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A closer look at the evolution of the PSI Initiative, its governance, and its global strategy Sustainable insurance seminar 20 October 2015, Bogotá, Colombia Butch Bacani Programme Leader The UNEP FI Principles for Sustainable Insurance Initiative 1 Creating a pioneering global framework and global initiative Phase 1 The global framework Create voluntary and aspirational global principles, including possible actions, to better understand and manage risks and opportunities in the insurance business associated with environmental, social and governance issues Phase 2 The global initiative Create a United Nations and global insurance industry initiative to promote the global adoption and implementation of the Principles 2 Scope of the Principles ■ All lines of insurance Accident & Health, Agroforestry, Aviation, Casualty/Liability, Credit & Surety, Engineering, Life, Marine, Motor, Property ■ All insurance company business strategies and operations Company strategy, risk management & underwriting, product & service development, claims management, sales & marketing, investment management ■ All insurance industry participants Insurers, reinsurers, retrocessionaires, agents, brokers, other insurance service providers ■ All regions Africa, Asia, Europe, Latin America & the Caribbean, Middle East & North Africa, North America, Oceania 3 The 2011 PSI development process: Global, inclusive and consultative 4 The Principles for Sustainable Insurance: A global commitment to drive systemic change Principle 4: 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. Public Governments, regulators & other key stakeholders Clients & business partners Principle 1: We will embed in our decision-making environmental, social and governance issues relevant to our insurance business. Own business strategies & operations We will demonstrate accountability and transparency in regularly disclosing publicly our progress in implementing the Principles. 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. 5 Examples of CEO mandates Michael Diekmann, CEO, Allianz Group “Beginning in 2014 the Allianz ESG [Environmental, Social, and Governance] Guidelines will cover sensitive topics for all new business globally. This is a further milestone on our way to becoming the most sustainable insurer and asset manager, initiated by our ESG Board in 2012. We are now in the position to meet the aims of the Principles for Sustainable Insurance and to work together to accelerate the adoption of ESG by our industry. We feel it is critical to achieve integration of ESG across the entire insurance industry value chain.” Henri de Castries, CEO, AXA Group “As an insurer, our business is to protect people over the long term; we therefore have a responsibility to leverage our skills to help build a stronger and safer society. I am very proud the AXA Group is signing the Principles for Sustainable Insurance. I believe that by integrating, with the other signatories, environmental, social, and governance (ESG) issues into decision-making across the insurance value chain, we will contribute to a more sustainable insurance industry. This is another step for us in our engagement towards corporate responsibility, but also a call for action for the coming years. I am convinced that, with these Principles, we will better serve our clients and society as a whole.” Dr Nikolaus von Bomhard, CEO, Munich Re Group “Munich Re has adopted an active role in developing the Principles for Sustainable Insurance. Our success factors include not only efficient risk and capital management but also forward thinking and action. This is how we create lasting value. Putting quality before quantity enables us to achieve long-term profitable growth. We will use the Principles as a blueprint to further integrate environmental, social and governance factors into our core business. In doing so, we enhance our risk management.” Michel Liès, CEO, Swiss Re Group “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 6 of all.” towards this important common goal of making societies more resilient, innovative and inclusive in the interest PSI journey so far: From governance to strategy to implementation PSI launch + 1st meeting of PSI Initiative (Jun 2012, Rio de Janeiro) 1st PSI AGM (Oct 2012, Geneva): PSI constitutional guidelines approved Election of PSI Board (Nov-Dec 2012) Election of PSI Board Co-Chairs (Jan-Feb 2013) 1st PSI Board call (Apr 2013) 1st PSI Board meeting (Jul 2013, Zurich) 2nd PSI Board meeting + 2nd PSI AGM (Nov 2013, Beijing): 2014-16 PSI strategy approved Implementation of PSI strategy (2014) 3rd PSI Board meeting (Jun 2014, London) 3rd PSI AGM (Oct 2014, webinar): Progress of the PSI Initiative 2nd PSI Board elections (Nov-Dec 2014) 4th PSI Board meeting (May 2015, Rüschlikon/Zurich) 4th PSI AGM (Nov 2015, webinar): Progress of the PSI Initiative 7 How the PSI Board developed the strategy in 2013 Initial discussion: 1st PSI Board call (Apr 2013) Second discussion: Vision, purpose and goals agreed at 1st PSI Board in-person meeting (Jul 2013, Zurich) Review of macro trends, membership survey, stakeholder interviews, targets and KPIs, prioritisation framework, antitrust statement (Aug-Sep 2013) Summary of results: 2nd PSI Board call (Oct 2013) 2014-16 PSI strategy: Discussed and approved at 2nd PSI AGM (Nov 2013, Beijing) 8 The vision and purpose of the PSI Initiative “Our vision is of a risk aware world, where the insurance industry is trusted and plays its full role in enabling a healthy, safe, resilient and sustainable society.” “Our purpose is to enable the global insurance industry to better understand, prevent and reduce environmental, social and governance risks, and better manage opportunities to provide quality and reliable risk protection.” 9 Goals of the PSI Initiative Goal 1 (externally-focused) Goal 2 (internally-focused) Goal 3 (governance) • Working collaboratively to implement sustainable insurance across the industry and its stakeholders • Supporting PSI members to implement the Principles • Operating the PSI Initiative effectively, efficiently and transparently and ensuring its continuous improvement 10 PSI Antitrust Statement “We, the signatories and supporters of the Principles for Sustainable Insurance (PSI) Initiative, will discuss the matters of sustainable insurance aiming to reduce risk, develop innovative solutions, improve business performance, and contribute to environmental, social and economic sustainability. “While engaging in these discussions, we will be mindful of various national and international laws which restrict the exchange of information among competitors and in particular applicable antitrust rules. All participants shall be aware of their obligations in this respect. “We will therefore refrain from entering into any discussion, accord, agreement, or understanding with regard to commercially sensitive information that may be construed as anti-competitive. All meetings shall follow an approved agenda and each participant shall be obliged to speak up immediately for the purpose of preventing any discussion falling outside of what is legally permissible.” 11 Elements of the PSI strategy Macroeconomic trends Macro insurance industry trends Macro ESG issues Insurance industry-specific ESG issues and priorities Key stakeholders and expectations Resulting areas of focus for the PSI Initiative 12 2013 PSI survey Top 5 global ESG issues Which ESG issues—risks or opportunities—do you consider most important for the insurance industry to address globally? 1. Adaptation and resilience to extreme weather events (E) 2. Mis-selling and treating customers unfairly (G) 3. Insurance access and affordability (S) 4. Trust and reputation (G) 5. Regulatory risks (G) 13 2013 PSI survey Top 3 insurance industry value chain players Please rank insurance industry value chain players the PSI Initiative should engage to shift behaviour on ESG issues and deliver positive outcomes. 1. Insurers 2. Clients 3. Reinsurers 14 2013 PSI survey Top 3 insurance market bodies Please rank insurance market bodies the PSI Initiative should engage to shift behaviour on ESG issues and deliver positive outcomes. 1. Insurance regulators and supervisors 2. Insurance associations and federations 3. Insurance institutes and academies 15 2013 PSI survey Top 3 insurance industry stakeholders Please rank insurance industry stakeholders the PSI Initiative should engage to shift behaviour on ESG issues and deliver positive outcomes. 1. Insurance company owners (e.g. shareholders for stock companies, members and policyholders for cooperatives and mutuals) 1. Governments 2. Business and industry associations 16 2013 PSI survey Top 5 priority implementation support services from the PSI Initiative Please give your top 3 priorities on how the PSI Initiative can support you and your organisation in implementing the PSI. 1. Developing ESG guidelines, criteria and standards for the insurance business 1. Developing ESG models, analytics, tools and metrics for the insurance business 1. Carrying out collaborative projects and activities on key issues for the insurance industry 1. Carrying out research on key ESG issues for the insurance business 1. Building networks in the insurance industry and with stakeholder groups 17 PSI stakeholder interviews ESG issues that should be a focus for the PSI Initiative include: Fair and ethical business practices and reputational risks Universal access and affordable insurance products Active ESG risk management, particularly in emerging markets Climate and weather-related risks and disaster risk reduction Land-use changes, ecological degradation and water risks Changing demographics, including ageing, urbanisation, gender inequality Activities that should be a focus for the PSI Initiative include: Platform for raising awareness and dialogue on ESG issues and insurance Standards, methods and tools to embed ESG in insurance Research, education and training on good ESG risk management Risk services and insurance for vulnerable, under-insured or uninsured Work with regulators and governments on ESG risk management in insurance Scale up existing ESG “best practice” initiatives in the insurance industry and/or in collaboration with NGOs and UN organisations Work with suppliers and business partners on ESG risk management Build capacity of insurers in emerging markets to address ESG issues Focus where there are gaps and avoid duplication with other organisations Make sure disclosure and reporting on progress to implement the PSI demonstrates 18 accountability and transparency The PSI strategy for 2014-16 Moving from aspiration to transformation Vision Goal 3: PSI operations (governance) Sub-goals 1 Sub-goals 2 Sub-goals 3 • Promote the PSI Initiative and engage stakeholders • Develop and implement projects and activities that focus on understanding and managing ESG risks • Understand and develop solutions to address members’ pain points • Member exchange programme • Cost-efficient delivery • Measure and report on the impact of the PSI Initiative on advancing ESG issues and the value created for members • Embed a learning culture to foster continuous improvement Projects and activities Annual PSI member exchange programme Measuring the performance of the PSI Initiative 19 PSI membership growth Goal 2: Implementation support (internal) PSI report on progress Goal 1: Collaborative action (external) PSI annual public disclosure of implementation Review of macro trends Annual PSI membership survey Annual PSI stakeholder survey Purpose Insurance for sustainable development www.unepfi.org/psi 20 Defining the role of the insurance industry in UN global policy frameworks on sustainable development Sustainable insurance seminar 20 October 2015, Bogotá, Colombia Butch Bacani Programme Leader The UNEP FI Principles for Sustainable Insurance Initiative 21 2015 UNEP global insurance industry consultation Risk drivers and insurance issues 22 2015: A once-in-a-generation opportunity to support sustainable development March (Sendai) Sendai Framework for Disaster Risk Risk Reduction July (Addis Ababa) Addis Ababa Action Agenda September (New York) UN Sustainable Development Goals December (Paris) Universal climate change agreement 23 Insurance and the Sendai Framework for Disaster Risk Reduction 2015-2030 Expected outcome “The substantial reduction of disaster risk and losses in lives, livelihoods and health and in the economic, physical, social, cultural and environmental assets of persons, businesses, communities and countries.” Goal “Prevent new and reduce existing disaster risk through the implementation of integrated and inclusive economic, structural, legal, social, health, cultural, educational, environmental, technological, political and institutional measures that prevent and reduce hazard exposure and vulnerability to disaster, increase preparedness for response and recovery, and thus strengthen resilience.” Priority 1 Understanding disaster risk Priority 2 Strengthening disaster risk governance Priority 3 Investing in disaster risk reduction for resilience Priority 4 Enhancing disaster preparedness 24 Insurance and the Sendai Framework for Disaster Risk Reduction 2015-2030 Insurance industry relevant to all priority areas but explicitly referenced under Priority 3 30. (b) Promote mechanisms for disaster risk transfer and insurance, risk sharing and retention and financial protection (…) in order to reduce the financial impact of disasters on governments and societies, in urban and rural areas 31. (b) Promote the development and strengthening of disaster risk transfer and sharing mechanisms and instruments in close cooperation with partners in the international community, business, international financial institutions and other relevant stakeholders 25 Insurance and the Sendai Framework for Disaster Risk Reduction 2015-2030 Disaster risk reduction is a shared responsibility “…while States have the overall responsibility for reducing disaster risk, it is a shared responsibility between Governments and relevant stakeholders.” Business and financial institutions and regulators are explicitly cited as key stakeholders: 31. (c) Business, professional associations and private sector financial institutions, including financial regulators and accounting bodies, as well as philanthropic foundations, to: integrate disaster risk management, including business continuity, into business models and practices (…); engage in awareness-raising and training for their employees and customers; engage in and support research and innovation as well as technological development for disaster risk management; share and disseminate knowledge, practices and non-sensitive data; and actively participate (…) in the development of normative frameworks and technical standards that incorporate disaster risk 26 management. Sendai Framework’s 7 global targets 1. Substantially reduce global disaster mortality by 2030, aiming to lower the average per 100,000 global mortality rate in the decade 2020–2030 compared to the period 2005–2015 2. Substantially reduce the number of affected people globally by 2030, aiming to lower the average global figure per 100,000 in the decade 2020–2030 compared to the period 2005–2015 3. Reduce direct disaster economic loss in relation to global gross domestic product (GDP) by 2030 4. Substantially reduce disaster damage to critical infrastructure and disruption of basic services, among them health and educational facilities, including through developing their resilience by 2030 5. Substantially increase the number of countries with national and local disaster risk reduction strategies by 2020 6. Substantially enhance international cooperation to developing countries through adequate and sustainable support to complement their national actions for implementation of the present Framework by 2030 7. Substantially increase the availability of and access to multi-hazard early warning systems and disaster risk information and assessments to people by 2030 27 Insurers supporting UN global policy frameworks on sustainable development “The Sendai Conference outcome represents the first step of our journey to a new future.” Ban Ki-moon, UN Secretary-General “United for Disaster Resilience Statement” developed by the PSI A global commitment by the insurance industry to help implement the Sendai Framework for Disaster Risk Reduction 2015-2030 We believe that the insurance industry’s extensive experience and expertise in risk management–from identifying, assessing, preventing and reducing risk, to pricing, carrying and diversifying risk–can contribute not only to developing risk transfer solutions, but also, and particularly, risk reduction strategies. We believe that insights, data and tools from the insurance industry on disaster risk can help inform the debate on issues such as land use, building codes and standards, and zoning. We believe that certain proactive risk reduction and risk transfer strategies identified by the insurance industry can help protect investments and economies, and create long-term value. We believe that the insurance industry can play a key role, alongside governments, the broader business community and civil society, in raising awareness of disaster risk and in promoting disaster risk reduction, in addition to developing risk transfer solutions and making risk-sensitive investments. We believe that the strong risk management processes, models, analytics and metrics developed by the insurance industry can serve as a model for understanding and reducing risk across a broad range of industries and public sector entities. 28 Collaborating for sustainable development through the PSI Initiative The case for disaster risk reduction Disaster losses in the past decade: Average annual economic losses: USD 190 billion Average annual insured losses: USD 60 billion 21st century so far: More than 1 million deaths due to disasters Many nations spend more on disaster relief and recovery than on disaster risk reduction BUT Funds are diverted to dealing with disasters after the fact, rather than being spent on reducing the risk of disasters happening The PSI Global Resilience Project The project brings together insurers from around the world to: Deepen understanding of disaster risk reduction Assess the economic and social costs Use this information to help governments and communities manage risk The PSI Global Resilience Project: Building disaster-resilient communities and economies First phase: Assessing the effectiveness of risk reduction Disaster risk reduction measures Behavioural Structural Ecosystems Multi-hazard measures (cyclone, flood, earthquake) Education & communication Risk mapping Early warning & evacuation Cyclone Flood Earthquake Mangroves Controlled barriers Building codes Sand dunes Wetlands Retrofitting Seawalls Land-use planning Relocation 31 The PSI Global Resilience Project: Building disaster-resilient communities and economies Second phase: Global Risk Map (http://globalriskmap.nicta.com.au) 32 The PSI Global Resilience Project Building disaster-resilient communities and economies Collaborative project led by Insurance Australia Group Phase 1 (2014) Global research on disaster risk reduction measures Phase 2 (2015) Publicly accessible online global risk map Phase 3 (2015-16) Country engagements + How-to resilience guide Examples: http://globalriskmap.nicta.com.au Australian Business Roundtable for Disaster Resilience & Safer Communities Partners for Action Network on flood resilience in Canada City Innovation Platform for African Infrastructure Risk & Resilience Resilient New Zealand initiative 33 The Australian Business Roundtable for Disaster Resilience & Safer Communities Awarded certificate of distinction at 2015 UN Sasakawa Awards for Disaster Reduction Australian government investment Australian Productivity Commission recommendation Disaster risk reduction $50 million Post-disaster relief & recovery $560 million Disaster risk reduction $200 million 34 Insurance and the UN Framework Convention on Climate Change (UNFCCC) UNFCCC Mitigation Adaptation Warsaw International Mechanism for Loss & Damage 35 Warsaw International Mechanism for Loss & Damage associated with Climate Change Impacts Mounting scientific evidence suggests that despite global mitigation and adaptation efforts, residual losses and damages from climate change are inevitable. Loss and damage can result from slow-onset events (e.g. sea level rise, glacial retreat) or extreme events (e.g. extreme rainfall, flooding, heat waves) With the establishment of the Warsaw International Mechanism (WIM) for Loss and Damage associated with Climate Change Impacts at COP19 in 2013, loss and damage from climate change has risen to global attention Over the next two years the WIM will seek to address gaps in knowledge, collect and share relevant data, and strengthen dialogue between stakeholders. The initial two-year work plan of the WIM identifies nine action areas, two of which explicitly refer to risk management approaches, insurance and other financial instruments: “Action area 2: Enhance the understanding of, and promote, comprehensive risk management approaches (assessment, reduction, transfer, retention), including social protection instruments and transformational approaches, in building long-term resilience of countries, vulnerable populations and communities…” “Action area 7: Encourage comprehensive risk management by the diffusion of information related to financial instruments and tools that address the risks of loss and damage associated with the adverse effects of climate change to facilitate finance in loss and damage situations... These financial instruments and tools may include: comprehensive risk management capacity with risk pooling and transfer; catastrophe risk insurance; contingency finance; climate-themed bonds and their certification; catastrophe bonds; and financing approaches to making development climate resilient…” Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts As the risk management process in insurance includes understanding, preventing and reducing risk, other action areas under the WIM are also relevant, such as: Understanding how loss and damage affect vulnerable countries, populations and ecosystems Enhancing data on and knowledge of the risks of slow-onset events and their impacts Enhancing the understanding of the capacity and coordination needs with regard to building resilience against loss and damage The WIM presents an important opportunity for the insurance industry to exercise leadership and demonstrate how it can collaborate and support effective climate change adaptation, and help manage loss and damage that have not been avoided through climate change mitigation and adaptation efforts. The coming UN Climate Resilience Initiative 38 A2R: The coming UN Climate Resilience Initiative UN Secretary-General to give a decisive push on resilience at 2015 UN Climate Change Conference Umbrella UN initiative to catalyse action and address gaps by bringing different actors together Specific 2020 outcomes Commitments from governments; the insurance, financial and private sectors; and civil society 39 A2R: Three pillars of action Absorbing residual risk: Insurance mechanisms and social protection Reshaping development pathways to reduce risk drivers: Sustainable financial system and resilient infrastructure Absorb Understanding and anticipating risk: Early warning and action systems Climate resilience Anticipate Reshape 40 A2R: Possible 2020 outcomes Anticipate XX number of vulnerable countries have access to comprehensive multi-hazard early warning-early action systems Absorb XX% increases to risk transfer schemes in XX countries, and XX% of individuals in these countries have access to risk transfer and strengthened social protection packages, as part of comprehensive disaster risk financing and insurance strategy spanning individual, sub-national and national levels Reshape Climate risks are internalized into national, sub-national and international decision-making for finance and infrastructure [physical and natural] AXA-PSI international climate resilience survey of cities & SMEs Perceptions on climate risk and resilience Over 40 city leaders (e.g. mayors, chief resilience officers) in developed and developing countries Over 1,000 small-to-medium-sized enterprises in Asia, Europe and the Americas Supported by ICLEI−the global cities network Survey report to be launched in October 2015 in Paris The protection gap Gap between economic losses from natural catastrophe losses and insured losses has been increasing USD bn 450 Uninsured losses Insured losses 10-year moving average insured losses 10-year moving average total economic losses 400 Economic development, population growth and a higher concentration of assets in exposed areas are increasing the economic cost of disasters 350 300 250 The protection gap for 2014 losses was USD 75 billion 200 150 100 50 0 1980 1985 1990 1995 2000 2005 2010 Source: Swiss Re Economic Research & Consulting and Cat Perils, Sigma on natural catastrophes and man-made disasters 4 Demand for natural catastrophe insurance capacity is expected to continue to rise Urbanisation rate will continue to increase: Growth acceleration of commercial insurance thanks to urbanisation-led infrastructure spending * includes China, India, Indonesia, Malaysia, Philippines, Thailand and Vietnam; Source: Sigma 5/2013 E Demand for natural catastrophe insurance capacity: Increase on average by approx. 50% in mature markets and 100% in high-growth markets by 2020 compared to 2012 2012 vs. 2020E EQ: Earthquake (500 yrs) TC/WS: Tropical Cyclones/Winter Storms (100 yrs); TC includes storm surge FL: River Flood (250 yrs) 4 Mortality protection gap Income to maintain living standard Protection in place Protection needed The protection gap is also prominent in life insurance Net financial assets / savings Relevant life insurance Protection gap1 Market risk premium growth 2015-2025E Nominal growth in USD bn North America Latin America EMEA - emerging EMEA - developed Asia - developed CAGR real 86 34 24 42 65 Asia - emerging 117 Developed Emerging 193 175 Est. USD trn 2.6% 20 5.9% 7 2.0% 15 5.2% 7 3.2% 14 9.0% 46 2.7% 65 7.5% 44 Source: Swiss Re calculations, 1 Swiss Re estimates, 2014 4 Different solutions are available to address the protection gap How to close the gap? Solution type Economic loss Description Foregone revenues Damaged public physical assets Macro gap Risk transfer solutions for (sub)sovereigns to cover their direct or indirect costs Clean up costs Emergency relief Insured loss Damaged uninsured private assets Livelihood assistance, rehabilitation of the poor 1 Pooling Insurance schemes and pools to increase insurance penetration; distribution and simplified products Micro Simplified products distributed via aggregators such as MFIs1, NGOs, and corporates Monetary Financial Institutions Source: Swiss Re 46 4 Is it time to create a set of Insurance Development Goals? The UN Sustainable Development Goals 2015-2030 GOAL 1 GOAL 2 GOAL 3 GOAL 4 GOAL GOAL GOAL GOAL 5 6 7 8 GOAL 9 GOAL GOAL GOAL GOAL GOAL 10 11 12 13 14 GOAL 15 GOAL 16 GOAL 17 End poverty in all its forms everywhere End hunger, achieve food security and improved nutrition and promote sustainable agriculture Ensure healthy lives and promote well-being for all at all ages Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all Achieve gender equality and empower all women and girls Ensure availability and sustainable management of water and sanitation for all Ensure access to affordable, reliable, sustainable and modern energy for all Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation Reduce inequality within and among countries Make cities and human settlements inclusive, safe, resilient and sustainable Ensure sustainable consumption and production patterns Take urgent action to combat climate change and its impacts Conserve and sustainably use the oceans, seas and marine resources for sustainable development Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels Strengthen the means of implementation and revitalize the global partnership for 47 sustainable development Is it time to create a set of Insurance Development Goals? September 2015 “Insurance sector initiatives… including the UNEP FI Principles for Sustainable Insurance…are demonstrating leadership in researching, debating and promoting the role of insurers in sustainable development. “This includes an explicit recommendation to create a set of Insurance Development Goals, based on a pioneering global consultation by the PSI Initiative and the UNEP Inquiry.” – UN Global Compact & KPMG Sustainable Development Goal (SDG) industry matrix for financial services 48 Examples of insurance industry solutions that promote sustainable development As risk managers Research on health, disaster risk reduction and climate change adaptation and mitigation Catastrophe risk analysis and models that integrate natural ecosystems, climate change and socio-economic vulnerability factors Risk management processes and insurance underwriting guidelines that promote better health, disaster risk reduction and climate change adaptation and mitigation Literacy programmes on health, climate and disaster risks and insurance Programmes that improve disaster awareness and preparedness in communities Risk management tools for clients and suppliers to reduce climate and disaster risk As risk carriers Insurance for low-income people, people with disabilities, people with HIV/AIDS, ageing populations Insurance for climate risks and natural hazards Insurance for renewables, green buildings, zero and low-emission transportation, energy efficiency, green rebuilding Insurance based on usage (e.g. pay-as-you-drive, pay-how-you-drive) Insurance for sustainable agriculture and forestry Insurance for environmental pollution liabilities As institutional investors Investment in inclusive finance, healthcare Investment in climate and disaster-resilient infrastructure Investment in sustainable agriculture and forestry Investment in renewables, green buildings, zero and low-emission transportation Investment in sustainable water management, sustainable waste management 49 2015 insurance industry commitments Insurance industry commitments to build climate and disaster resilience and promote sustainable development www.unepfi.org/psi/commitments/ Exercise leadership by voluntarily making specific, measurable and time-bound commitments Showing concrete actions that build climate and disaster-resilient communities and economies, and promote economic, social and environmental sustainability Raise the insurance industry’s level of ambition in building climate and disaster resilience and promoting sustainable development Any insurance organisation, or any organisation that works with the insurance industry, is welcome to make a voluntary commitment 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 50 2016: Another important year for the global sustainable development agenda 1st World Humanitarian Summit 23-24 May 2016 Istanbul, Turkey Habitat III: UN Conference on Housing & Sustainable Urban Development 17-20 October 2016 Quito, Ecuador 51 Insurance for sustainable development www.unepfi.org/psi 52