Insurers rise to social sustainability challenge

As stakeholder expectations around sustainability grow, a new Geneva Association report, The Role of Insurance in Promoting Social Sustainability, highlights the insurance industry’s “abundant, inherent social benefit in providing financial stability and peace of mind” to people and businesses, estimating that insurers contribute between US$5-5.5trn a year to global financial resilience through insurance claims and benefit payouts.

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, investors and operations, from human rights violations to algorithmic bias.

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.”

See the next issue of CIR Magazine for more on this report.

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