World insurers and the UN Environment Programme have launched a global insurance industry guide to tackle sustainability risks. The project is co-led by United Nations Environment Programme (UNEP) and Germany-based insurer Allianz.
The members of the Principles for Sustainable Insurance project team that developed the guide include American Hellenic Hull Insurance Co, American Property Casualty Insurance Association, AXA, Generali, MAPFRE, Munich Re, QBE, RSA, Santam, Swiss Re, Temple University’s Fox School of Business, University of Technology Sydney, West Chester University, and Zurich.
Ilias Tsakiris, CEO of AHHIC, said that “AHHIC is the exclusive marine insurance company, among world’s insurers and institutions, participating in the development of the first global guide, which provides the framework for the insurance industry to manage Environmental, Social and Governance issues”.
The guide, managing environmental, social and governance (ESG) risks in non-life insurance business, outlines eight areas comprising possible actions for insurers to manage ESG risks in non-life insurance transactions, focusing on risk assessment and insurance underwriting. These areas include developing a company’s ESG approach and risk appetite, integrating ESG issues into the organisation, establishing roles and responsibilities for ESG issues, escalating ESG risks to decision-makers, detecting and analysing ESG risks, and decision-making and reporting on ESG risks