Underwriting environmental, social and governance risks in non-life insurance business

Published March 2019

 

The first guidance designed for the global insurance industry to integrate sustainability into industrial and commercial business has launched for public consultation. The guide “Underwriting environmental, social and governance risks in non-life insurance business” will help non-life insurers manage environmental, social and governance risks in insurance underwriting—the core process of evaluating, defining and pricing insurance risks.

Environmental, social and governance (ESG) issues—also known as sustainability issues— pose a shared risk to insurers, communities, businesses, cities, governments and society at large, providing a strong incentive for innovation and collaboration. As risk managers, insurers and investors, the insurance industry plays an important role in promoting economic, social and environmental sustainability—or sustainable development.

This version of the guide is a public consultation document. The consultation period will be open from 27 February to 30 June 2019. Feedback will be reviewed by members of the Principles for Sustainable Insurance project team. Interested parties can send their feedback for consideration to psi-underwriting@unepfi.org or by completing our online consultation here. The first edition of the guide will be published in December 2019; it is intended to be iterative, seeking regular feedback and updates on a yearly basis.

The guide is a result of a multi-year initiative co-led by UNEP FI’s Principles for Sustainable Insurance and leading insurer, Allianz, and was launched in in Munich in February 2019 at a joint UNEP FI-Allianz event, Insuring for Sustainable Development: Raising the industry’s ambition.

Download the report here. Complete the online consultation here.