Non-life insurance companies have both financial and environmental incentives to improve their sustainability performance. To increase awareness of which companies are best at acting according to those incentives, Söderberg & Partners’ sustainability analysis of non-life insurance companies covers how the companies integrate sustainability considerations in their work with insurance products, investments of premiums, and sharing sustainability knowledge both internally and externally. In the analysis, the companies that do best are highlighted with a green score, and those who fall behind get a red score.
Non-life insurance companies have a pivotal position in the sustainable transition. They can help customers mitigate risks and damages from climate change, while proactively reducing emissions by investing insurance premiums in sustainable activities. By taking climate risks into account, sharing information on damage prevention methods, and introducing circular processes into claims handling, property insurance companies can play an important role in the transition to a more sustainable society.
Introducing stricter sustainability policies can benefit non-life insurance firms financially if the many sustainability-linked risks are properly mitigated. Aside from the direct physical risks of assets being damaged because of changes in the climate, there are also risks associated with the insecurity of the financial value of assets. A concrete example of this is seaside property which might be subject to water damage due to heightened ocean levels. Finally, reputational and responsibility risks can also lead a company to lose a competitive advantage if it appears unable to reach a higher sustainability standard. Addressing all these risks can lead to higher sustainability performance and a better financial outlook.
By considering sustainability in their underwriting, investment, and communications processes, non-life insurance firms can perform better both environmentally and financially.
To evaluate which Swedish non-life insurance companies have the best strategies for accomplishing this, Söderberg & Partners conducts an annual survey and analysis. The analysis focuses on the companies’ sustainability integration within:
- Customer evaluation and engagement
Awareness-building within the industry and amongst employees of the potential impacts non-life insurance companies can have on the environment and sustainable development
Each category of the analysis is accompanied by a relative grade of green, yellow, and red scores, where the companies with the best performance get a green score while those with more work to do get a red score. In this year’s analysis, 2 out of 21 companies got a green score in every applicable category: Länsförsäkringar and Svedea. Both companies put a lot of effort into reducing material use from insurance claims, follow up on sustainability criteria in their investments, and take active roles in sharing best practices and experiences with other companies in their sector.
Read the full analysis to find out more about how sustainable your property insurance provider is (in Swedish):
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Let's hope this encourages other insurers to up their game. A sustainable insurance industry is essential for a sustainable future. Here's to a future where insurance companies are protecting both our wallets and the planet!
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The insurance sector can be a powerful agent in building a greener future
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This is great, insurance companies need to take responsibility in the transition
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Good report.It gives a clarity on which company is keen on sustainability,giving investors options to choose.where to invest their money.
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This achievement highlights their commitment to environmental, social, and governance principles, setting a positive example for the industry. Their success serves as a beacon for other firms to prioritize sustainability in their operations and decision-making processes.
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Applause for the report! Atleast companies will know which organizations are passionately toward sustainability and still know where to devote in.
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Thank you for the report! It's interesting to hear about how insurance companies can make a difference, we really are all part of the transition!
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This scale will also help people know which organizations take sustainability seriously and where to invest in. Companies with good sustainability scores will be better suited to the market as the population joins hands in the green movement effectively hurting stocks of companies who do not try getting themselves sustainable.