Country for PR: United Kingdom
Contributor: PR Newswire Europe
Friday, November 11 2022 - 03:57
Insurers are rising to the world’s social sustainability challenges, says The Geneva Association
ZURICH, Nov. 10, 2022 /PRNewswire-AsiaNet/--

Amid growing stakeholder expectations for businesses to have more social 
impact, a new Geneva Association report, The Role of Insurance in Promoting 
Social Sustainability, highlights insurance's abundant, inherent social benefit 
in providing financial stability and peace of mind to people and businesses. 
The Geneva Association estimates that insurers contribute USD 5–5.5 trillion 
per year to global financial resilience through insurance claims and benefit 

To further advance social sustainability, the report advises insurers to hone 
their impact underwriting and investing activities, as well as due diligence on 
risks linked to their clients, investees and operations, from human rights 
violations to algorithmic bias.

The Geneva Association report puts forward an innovative framework for insurers 
to assess their 'social footprint', inspired by the Greenhouse Gas Protocol's 
approach to carbon emissions disclosure:

- Scope 1 is an insurer's social impacts on its employees.
- Scope 2 is the insurer's impacts on communities.
- Scope 3 – by far the most important – is the insurer's social impacts across 
the value chain, from risk-taking and servicing to investing – upstream 
(value-chain partners) and downstream (customers and investees).

Jad Ariss, Managing Director of The Geneva Association, said: "Clearly 
businesses need to do more to promote social sustainability, particularly in 
light of the repercussions of the pandemic and Russia-Ukraine war. Insurers 
have always been – and will continue to be – at the forefront of this agenda; 
the very essence of the insurance business is protecting society, providing 
financial security and peace of mind, and supporting recovery from shocks. That 
said, insurers can build out their impact in this space and need to address the 
absence of suitable metrics. We hope our report serves as a guide."

The author of the report, Kai-Uwe Schanz, Deputy Managing Director and Director 
of Socio-economic Resilience at The Geneva Association, said: "The report 
recommends insurers to adopt a three-tier approach to managing social 
sustainability. First, maximise the inherently positive social impacts of 
insurance; second, protect those benefits by carefully mitigating potentially 
negative impacts; and, third, explore the scope for additional, commercially 
viable social benefits. Based on this approach, we believe that insurers can 
further enhance their role in providing socially relevant products and working 
to close protection gaps. This is more important than ever as the transition to 
a net-zero economy needs to be socially just and inclusive."

The Geneva Association is the only global association of insurance companies; 
its members are insurance and reinsurance CEOs. Based on rigorous research 
conducted in collaboration with its members, academic institutions and 
multilateral organisations, The Geneva Association investigates key risk areas 
that are likely to impact the insurance industry, develops recommendations and 
provides a platform for stakeholders to discuss them. In total, the companies 
of Geneva Association members are headquartered in 26 countries around the 
world; manage USD 21 trillion in assets; employ more than 2.5 million people; 
and protect 2.6 billion people.


Source: The Geneva Association