The insurance industry’s core business is to understand, manage and carry risk. We depend on the trust people place in our industry to fulfil its obligations. Through risk prevention and risk reduction and by sharing risks over many shoulders, the insurance industry helps protect society, fosters innovation and underpins economic development. These are key contributions to a well-functioning and sustainable society.
Our world is facing increasing environmental, social and governance (ESG) challenges. This changing risk landscape is leading to diverse, interconnected and complex risks, and presents new opportunities. Accordingly, we believe it is prudent for the insurance industry to adjust the range of risk factors considered in managing its business.ESG issues are increasingly influencing traditional risk factors and can have a significant impact on the industry’s viability.Therefore, a resilient insurance industry depends on holistic and far-sighted risk management in which ESG issues are considered.
It is our aspiration to build on the foundation the insurance industry has laid in supporting a sustainable society. The future we want is a society in which people are aligned and incentivised to adopt sustainable practices. To realise this aim, we will use our intellectual, operational and capital capacities to implement the Principles for Sustainable Insurance (the ‘Principles’) across our spheres of influence, subject to applicable laws, rules and regulations and duties owed to shareholders and policyholders.