Insurance industry commitments to build climate and disaster resilience and promote sustainable development

               

 

1. Context

In March 2015, the UNEP FI Principles for Sustainable Insurance (PSI) Initiative launched the “United for disaster resilience” statement at the 3rd UN World Conference on Disaster Risk Reduction in Sendai, Japan. The statement outlines the roles of the insurance industry—as risk managers, risk carriers and institutional investors—in helping implement the Sendai Framework for Disaster Risk Reduction 2015-2030. See the UN press release.

In Sendai, the PSI announced a separate initiative, calling on insurance and stakeholder organisations to exercise leadership by voluntarily making specific, measurable and time-bound commitments. The aim is to show concrete actions that build climate and disaster-resilient communities and economies, and promote economic, social and environmental sustainability.

This second PSI initiative raises the insurance industry’s level of ambition in building disaster resilience and promoting sustainable development. 2015 offers an unprecedented opportunity to shape a sustainable future for all as government leaders, business and civil society make long-term commitments on disaster risk reduction (March), financing for development (July), the Sustainable Development Goals through to 2030 (September) and climate change (December).

2. Make a commitment

Any insurance organisation, or any organisation that works with the insurance industry, is welcome to make a voluntary commitment. Any authorised signatory can make the commitment.

Below is a list of possible commitments. It is not a definitive list. These commitments are grouped based on the four Principles for Sustainable Insurance, which are structured according to the spheres of influence of an insurance company. You can make a commitment that is not on the list.

To make a voluntary commitment, please complete the commitments form and send it to psi-commitments@unepfi.org.

3. Promoting your commitments

Your commitments will be promoted through the PSI website, PSI and UNEP FI communications, and key events such as but not limited to:

4. The commitments

Principle 1: We will embed in our decision-making environmental, social and governance issues relevant to our insurance business.

Category of voluntary commitment Organisations that have committed to act
1.1 Conduct research on disaster risk reduction and climate change adaptation and mitigation AXA, Grupo Segurador Banco do Brasil e MAPFRE, Insurance Australia Group, Insurance Council of New Zealand, Munich Re, Sompo Japan Nipponkoa Insurance, Tokio Marine & Nichido Fire Insurance, Zurich Insurance Group
1.2 Integrate natural ecosystems, climate change and socio-economic vulnerability factors into catastrophe risk analysis and models AXA, Insurance Australia Group
1.3 Develop risk management processes and insurance underwriting guidelines that promote disaster risk reduction and climate change adaptation and mitigation Aviva, AXA, Grupo Segurador Banco do Brasil e MAPFRE, Insurance Australia Group, Munich Re
1.4 Develop insurance products for climate and disaster risk AXA, Munich Re, Tokio Marine & Nichido Fire Insurance
1.5 Develop insurance products for low-emission and resource-efficient solutions Aviva, AXA, Munich Re, Sompo Japan Nipponkoa Insurance, Tokio Marine & Nichido Fire Insurance, Zurich Insurance Group
1.6 Develop insurance products for low-income, vulnerable and underserved communities Aviva, AXA, Insurance Australia Group, Munich Re, Sompo Japan Nipponkoa Insurance, Tokio Marine & Nichido Fire Insurance
1.7 Develop literacy programmes on climate and disaster risk and insurance Grupo MAPFRE, Grupo Segurador Banco do Brasil e MAPFRE, Insurance Council of New Zealand, Munich Re, Sompo Japan Nipponkoa Insurance, Tokio Marine & Nichido Fire Insurance
1.8 Develop claims management guidelines that improve response to catastrophe losses
1.9 Integrate climate and disaster risk into investment decision-making and ownership practices Aviva, AXA, Munich Re, Zurich Insurance Group
1.10 Invest in climate and disaster-resilient infrastructure Aviva, Munich Re, Zurich Insurance Group
1.11 Invest in low-emission and resource-efficient solutions (e.g. via the Portfolio Decarbonization Coalition) Aviva, AXA, Grupo MAPFRE, Grupo Segurador Banco do Brasil e MAPFRE, Munich Re, Tokio Marine & Nichido Fire Insurance
Other commitments (please specify)

Principle 2: We will work together with our clients and business partners to raise awareness of environmental, social and governance issues, manage risk and develop solutions.

Category of voluntary commitment Organisations that have committed to act
2.1 Improve disaster awareness and preparedness in communities Aviva, Insurance Australia Group, Insurance Council of New Zealand, Munich Re, Sompo Japan Nipponkoa Insurance, Tokio Marine & Nichido Fire Insurance, Zurich Insurance Group
2.2 Improve disaster response and recovery in communities Aviva, Grupo MAPFRE, Insurance Australia Group, Sompo Japan Nipponkoa Insurance, Tokio Marine & Nichido Fire Insurance, Zurich Insurance Group
2.3 Provide risk management tools for clients and suppliers to reduce climate and disaster risk Munich Re, National Reinsurance Corporation of the Philippines, Sompo Japan Nipponkoa Insurance, Tokio Marine & Nichido Fire Insurance, Zurich Insurance Group
2.4 Increase insurance products and capacity for low-income, vulnerable and underserved communities Aviva, AXA, Insurance Australia Group, Munich Re, Sompo Japan Nipponkoa Insurance, Tokio Marine & Nichido Fire Insurance
2.5 Increase insurance products and capacity for climate and disaster risk AXA, Sompo Japan Nipponkoa Insurance, Tokio Marine & Nichido Fire Insurance
2.6 Increase insurance products and capacity for low-emission and resource-efficient solutions Aviva, AXA, Munich Re, Sompo Japan Nipponkoa Insurance, Tokio Marine & Nichido Fire Insurance
Other commitment (please specify)

Principle 3: We will work together with governments, regulators and other key stakeholders to promote widespread action across society on environmental, social and governance issues.

Category of voluntary commitment Organisations that have committed to act
3.1 Support prudential policy, regulatory and legal frameworks that promote disaster risk reduction, climate change adaptation and mitigation, and improve access to insurance Aviva, AXA, Insurance Australia Group, Insurance Council of New Zealand, Tokio Marine & Nichido Fire Insurance
3.2 Create partnerships with governments, the financial and business community and civil society to promote disaster risk reduction, climate change adaptation and mitigation, and develop insurance solutions AXA, Grupo MAPFRE, Insurance Australia Group, Insurance Council of New Zealand, Munich Re, National Reinsurance Corporation of the Philippines, Sompo Japan Nipponkoa Insurance, Tokio Marine & Nichido Fire Insurance, Zurich Insurance Group
3.3 Create partnerships with academia and the scientific community to foster research and educational programmes on disaster risk reduction, climate change adaptation and mitigation, and insurance solutions Aviva, AXA, Grupo Segurador Banco do Brasil e MAPFRE, Insurance Australia Group, Munich Re, Insurance Council of New Zealand, Sompo Japan Nipponkoa Insurance, Tokio Marine & Nichido Fire Insurance, Zurich Insurance Group
3.4 Create partnerships with media to promote public awareness of the benefits of disaster risk reduction, climate change adaptation and mitigation, and insurance solutions Aviva, AXA, Insurance Australia Group, Munich Re
Other commitment (please specify)

Principle 4: We will demonstrate accountability and transparency in regularly disclosing publicly our progress in implementing the Principles.

Category of voluntary commitment Organisations that have committed to act
4.1 Assess, measure and monitor your company’s management of climate and disaster risk in its insurance and investment portfolios and proactively and regularly disclose this information publicly AXA
4.2 Participate in relevant disclosure or reporting frameworks that measure climate and disaster risk in insurance and investment portfolios (e.g. disclosure frameworks on climate risk, carbon footprint (e.g. via the Montréal Carbon Pledge) and sustainability) Aviva, AXA, Grupo Segurador Banco do Brasil e MAPFRE, Insurance Australia Group, Munich Re, Sompo Japan Nipponkoa Insurance, Tokio Marine & Nichido Fire Insurance
4.3 Disclose the resilience of your company’s insurance and investment portfolios to climate and disaster risk (e.g. environmental risk stress tests) AXA, Munich Re
4.4 Dialogue with clients, regulators, rating agencies and other stakeholders to gain mutual understanding on the value of disclosing climate and disaster risk Aviva, AXA, Grupo MAPFRE, Munich Re
Other commitment (please specify)

 


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