Launched at the 2012 UN Conference on Sustainable Development, the UNEP FI Principles for Sustainable Insurance (PSI) serve as a global framework for the insurance industry to address environmental, social and governance risks and opportunities. The PSI initiative is the largest collaborative initiative between the UN and the insurance industry.
Sustainable insurance is a strategic approach where all activities in the insurance value chain, including interactions with stakeholders, are done in a responsible and forward-looking way by identifying, assessing, managing and monitoring risks and opportunities associated with environmental, social and governance issues.
Principles of Sustainable insurance
Principles for Sustainable Insurance serve as a global framework for the insurance industry to address environmental, social and governance risks and opportunities.
Endorsed by the UN Secretary General and launched in 2012, the four Principles are based on the insurance industry’s core business to understand, manage and carry risk.
Principle 1 – We will embed in our decision-making environmental, social and governance issues relevant to our insurance business.
Company strategy
Establish a company strategy at the Board and executive management levels to identify, assess, manage and monitor ESG issues in business operations
Risk management and underwriting
Establish processes to identify and assess ESG issues inherent in the depository and be aware of potential ESG-related consequences of the company’s transactions
Sales and marketing
Educate sales and marketing staff on ESG issues relevant to products and services and integrate key messages responsibly into strategies and campaigns
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.
Clients and suppliers
Dialogue with clients and suppliers on the benefits of managing ESG issues and the company’s expectations and requirements on ESG issues
Integrate ESG issues into tender and select process for suppliers
Insurers, reinsurers and mediator
Promote the adoption of the Principles in different ways
Principle 3 – We will work together with governments, regulators and other key stakeholders to promote universal action across society on environmental, social and governance issues
Governments, controllers and other policymakers
Support efficient policy, ministerial and legal frameworks that enable risk reduction, alteration and better management of ESG issues
Dialogue with governments and regulators to develop desegregated risk management proceed towards and risk transfer solutions
Other key stakeholders
Dialogue with intergovernmental and non-governmental corporations to support sustainable development by providing risk management and risk transfer skillfulness
Dialogue with media to promote public consciousness of ESG issues and good risk management