Publications

Insurance in a Changing Risk Landscape - Local lessons from the Southern Cape of South Africa (1.2 MB | 16 pages)

This report is a result of the research partnership between the Santam Group, WWF, University of Cape Town and Council of Scientific & Industrial Research, and was produced in collaboration with UNEP FI.

It features a case study on the current and future risk exposure to wildfire, flood and sea storm in the Eden District Municipality of South Africa, and offers insights on risk drivers such as climatic changes and human-induced changes to land cover and the buffering capacity of ecosystems. This makes a case for ‘ecosystem-based adaptation’, an approach that uses biodiversity and ecosystem services as part of an overall adaptation strategy, complementing traditional actions such as infrastructure development.

The report suggests a systems view of risk assessment, and a more proactive approach to risk management through a shared response at the local level.

It was launched during the 2011 UN Climate Change Conference in Durban, South Africa at an event focusing on how governments and the insurance industry can work together in building climate-resilient communities.

Published: 2011 | By: Santam, WWF, University of Cape Town, CSIR, UNEP FI

Global insurance industry statement: Adapting to climate change in developing countries (550 KB | 4 pages)

The global insurance industry demands public-private action on climate change adaptation in developing countries

Four initiatives representing more than 100 leading international insurance companies are today calling on governments worldwide to harness risk management techniques and insurance expertise to help implement climate change adaptation measures in the developing world as well as to firmly anchor insurance mechanisms as part of the future international climate change regime under the UNFCCC.

The data is clear: weather-related disasters have become significantly more frequent and more extreme in recent decades and this trend will not cease anywhere in the mid-term future. Ambitious action on reducing greenhouse gas emissions remains critical in order to keep climate change within boundaries not dangerous for global human development. There is a sharpening need, however, to adapt to the unavoidable effects of climate change. This is particularly the case in developing countries where human health, social security and basic infrastructure are less robust.

Given its risk management expertise and skills, the insurance industry can play an important role in supporting governments to prioritise concrete adaptation measures, incentivise loss reduction, develop products to cover emerging risks and raise awareness amongst many stakeholders. However, without a suitable enabling economic and regulatory framework, insurance risk management mechanisms are falling considerably short of their potential to deliver adaptation benefits.
See the Press Release.
Versions: French Spanish Korean

Published: 2010 | By: ClimateWise, Geneva Association, Munich Climate Insurance Initiative, UNEP FI

The global state of sustainable insurance – Understanding and integrating environmental, social and governance factors in insurance (5.4 MB | 90 pages)

This ground-breaking report explores the complex relationship between environmental, social and governance (ESG) factors, core insurance operations, and the insurance industry.

The report is based on a pioneering global survey conducted in 2009 by the UNEP FI Insurance Working Group and its Academic Working Group on the understanding and integration of ESG factors in insurance underwriting and product development.

The comprehensive survey covered a wide spectrum of ESG factors as they relate to the insurance business, primarily—climate change, biodiversity loss & ecosystem degradation, water management, pollution, financial inclusion, human rights, emerging manmade health risks, ageing populations, regulations, disclosure, ethics & principles, and alignment of interests. The survey obtained respondents from 60 territories worldwide—from Africa, the Asia-Pacific, Europe, North America, and Latin America & the Caribbean—with over 3,800 years of cumulative insurance experience, and generated nearly 2,700 pages of data.

This landmark report includes forewords from UN Under-Secretary-General and UNEP Executive Director, Achim Steiner, and HRH The Prince of Wales. It was launched at the 2009 UNEP FI Global Roundtable in Cape Town, South Africa, which convened leaders and experts from the financial sector, governments, civil society and academia to discuss and act on the sustainability-finance nexus across the insurance, investment and banking industries, and to set the agenda for the coming years. The 2009 Roundtable ran the theme, ‘Financing Change, Changing Finance’, and brought together over 400 delegates from around the world.

Press release

Published: 2009 | By: UNEP FI

Article: Insuring Climate Change and Sustainability --- Unleasing innovation and intelligent partnerships (285 KB | 4 pages)

UNEP FI article in the 2008 Climate Action report launched at the UN Climate Change Conference in Poznan, Poland in December 2008.

Published: 2009 | By: UNEP FI

Concept paper: Making Forests Competitive - Exploring insurance solutions for permanence (59 KB | 13 pages)

View the related event: Making Forests Competitive – Practical Solutions for Permanence (UNFCCC COP 14) 9 December, Poznan, Poland

Published: 2008 | By: UNEP FI

Insuring for Sustainability: Why and how the leaders are doing it (3.2 MB | 64 pages)

Versions: French(2.5MB) Turkish(7.5MB)

Today, the insurance industry faces the great challenge of coping with a rapidly changing risk landscape, one from which global sustainability issues have emerged, and continue to emerge. The risks that these issues entail are serious, while the opportunities, largely untapped. It is therefore insightful, as a starting point, to look at what leading players are doing in addressing some of the most challenging global sustainability issues, and to recognise the vital role the insurance industry can play.

While the report is instructive and highlights case studies of best practice, it is not meant to provide ready-made solutions. Its primary aim is to provide illumination by imparting knowledge and a deeper understanding of the issues. We believe that this aim is a critical first step towards finding solutions to the serious risks of today, and uncovering the opportunities of a sustainable tomorrow.

Published: 2007 | By: UNEP FI

Risk, the Environment, and the Role of the Insurance Industry (414 KB | 53 pages)

Prepared by the UNEP FI Australasian Advistory Committee on Insurance, this publication discusses risk management in general and the role that insurance plays in risk management for businesses. It focuses on environmental risk as one of the sources of potential liability that a business would manage, and the potential consequences of not properly managing environmental risk.

Drawing in part from the Australian experience in this area, the report also looks at how insurance addresses liability for environmental risk at present, and considers whether there is a broader role for insurance in an environmentally sustainable future.

Published: 2003 | By: UNEP FI / EPA Victoria (Australia)