1. Background

The insurance industry plays a key role in promoting economic, social and environmental sustainability as risk managers, risk carriers and investors.

At present, there is no global guidance for the insurance industry on the integration of environmental, social and governance (ESG) risks into insurance underwriting—the process of evaluating, defining and pricing insurance risks. While the banking industry has, for example, developed the Equator Principles as its ESG standard for project finance—a specific type of financing—there is no equivalent insurance industry ESG standard for any line of business.

This project is an opportunity for the insurance industry to identify and define ESG risks from an insurance underwriting perspective, how to prevent and reduce such risks, and uncover opportunities. It has evolved out of other PSI-related projects, starting from the first-ever global insurance industry survey on ESG issues and insurance in 2009.

2. Aims

The project aims to:

This multi-year project includes a global consultation process and is expected to produce initial outputs in 2018.

3. Team

The core project team currently includes:

  • Allianz (Co-Lead)
  • UN Environment’s PSI Secretariat (Co-Lead)
  • AXA
  • Generali
  • Munich Re
  • Santam
  • Temple University Fox School of Business
  • University of Technology, Sydney (UTS) Business School
  • West Chester University

For questions, please contact psi-underwriting@unepfi.org.

4. Reference materials/links

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2016