A number of insurers and reinsurers have agreed to join the UN-backed set of Principles for Sustainable Insurance. The initiative aims to provide insurance tools for risk management in support of environmental, social and economic sustainability.
A bulletin from UK-based RSA notes that it is “one of the 30 companies and associations across the insurance industry,” who have agreed to support the program.
RSA described the Principles as providing “a holistic approach to managing a wide range of global and emerging risks, from climate change and natural disasters to water scarcity, food insecurity and pandemics.
“They represent the first-ever global sustainability framework tailored for the insurance industry that takes into account the fundamental economic value of natural capital, social capital and good governance. The Principles also aim to position the insurance industry as a lever for a green economy and sustainable development.”
Both Munich Re and Swiss Re also announced that they have agreed to join others in the insurance industry who are supporting the program. Munich Re noted that the “Environmental Program Finance Initiative’s ‘Principles for Sustainable Insurance’ (PSI) are intended to serve insurers as a guideline for considering sustainability criteria in conducting their core business. As one of the very first signatories, Munich Re intends to apply the principles consistently in planning and implementing its strategy of sustainable, long-term value creation.”
Swiss Re said the Principles establish a “global sustainability framework and initiative for the world’s re/insurers to manage various global challenges. The reinsurer added that it has been “actively contributing over the years to the development of the Principles and is proud to be a founding signatory.”
Group CEO Michel Liès explained: “The Principles for Sustainable Insurance create a global framework to manage environmental, social and governance challenges. I am proud that the insurance industry has now formally agreed to take the necessary steps towards an important common goal: making societies more resilient, inclusive and thus contributing to progress in the interest of all of us.”
Simon Lee, RSA Group CEO, stated: “RSA is pleased to become a founding signatory of the Principles for Sustainable Insurance. As a leading global insurer, we are committed to managing our business in a responsible and ethical manner. By doing so, we can identify and serve new markets for our products, reduce operating costs by driving environmental improvements, enhance our reputation and attract the best individuals to work for us. The Principles will act as an important framework to highlight the vital role insurance can play in enhancing the environment and society.”
Sources: Swiss Re, Munich Re, RSA