Download Goals of the PSI Initiative

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
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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
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Insurance for sustainable development
www.unepfi.org/psi
52