The UNEP FI Principles for Sustainable Insurance (download PDF): English – Français – 日本語 – Português – Español – Arabic
Our aspiration
The insurance industry’s core business is to understand, manage and carry risk. We depend on the trust people place in our industry to fulfil its obligations.Through risk prevention and risk reduction and by sharing risks over many shoulders, the insurance industry helps protect society, fosters innovation and underpins economic development. These are key contributions to a well-functioning and sustainable society.
Sustainable insurance is a strategic approach where all activities in the insurance value chain, including interactions with stakeholders, are done in a responsible and forward-looking way by identifying, assessing, managing and monitoring risks and opportunities associated with environmental, social and governance issues. Sustainable insurance aims to reduce risk, develop innovative solutions, improve business performance, and contribute to environmental, social and economic sustainability.
The insurance industry has the responsibility of providing quality and reliable products and services. This responsibility includes working with our clients and business partners to understand and manage risks that are or can be material to the insurance business.
Our world is facing increasing environmental, social and governance (ESG) challenges. This changing risk landscape is leading to diverse, interconnected and complex risks, and presents new opportunities. Accordingly, we believe it is prudent for the insurance industry to adjust the range of risk factors considered in managing its business.ESG issues are increasingly influencing traditional risk factors and can have a significant impact on the industry’s viability.Therefore, a resilient insurance industry depends on holistic and far-sighted risk management in which ESG issues are considered.
As risk managers, risk carriers and investors, the insurance industry has a vital interest and plays an important role in fostering sustainable economic and social development. We believe that better management of ESG issues will strengthen the insurance industry’s contribution to building a resilient, inclusive and sustainable society. However, many ESG issues are too big and complex and need widespread action across society, innovation and long-term solutions.
Therefore, it is our aspiration to build on the foundation the insurance industry has laid in supporting a sustainable society.The future we want is a society in which people are aligned and incentivised to adopt sustainable practices. To realise this aim, we will use our intellectual, operational and capital capacities to implement the Principles for Sustainable Insurance (the ‘Principles’) across our spheres of influence, subject to applicable laws, rules and regulations and duties owed to shareholders and policyholders.
Principle 1 |
We will embed in our decision-making environmental, social and governance issues relevant to our insurance business.Possible actions: Company strategy
Risk management and underwriting
Product and service development
Claims management
Sales and marketing
Investment management
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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.Possible actions: Clients and suppliers
Insurers, reinsurers and intermediaries
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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.Possible actions: Governments, regulators and other policymakers
Other key stakeholders
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Principle 4 |
We will demonstrate accountability and transparency in regularly disclosing publicly our progress in implementing the Principles.Possible actions:
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