2019
Sustainable insurance companies
In 2019, S&P non-life insurance department and sustainability team published an internal analysis of non-life insurance companies’ sustainability work.
Background
The total economic cost of global natural disasters between 2005-2015 is estimated to 1,3 trillion dollars. The non-life insurance industry is indirectly exposed to physical risk through claims management and transition risk where changes in legislation and consumption patterns may alter value of different investments and assets. S&P sustainability ratings aim at examine how non-life insurance companies’ work with sustainability issues and guide our clients that want to choose a sustainable non-life insurance.
Method
The rating is based on public information combined with data extracted from the companies’ responses in our questionnaire. The rating is relative, meaning that the companies’ sustainability work is rated against each other. An insurance company can obtain a green, yellow or red rating according to our analysis model.
Rating parameters
Sustainability in non-life insurance
This perspective covers how the insurance company integrate sustainability in claims management and procurement, and whether they support customers
to make environmental adaptations to minimise environmental risks.
Awareness and collaboration
For an effective implementation of the sustainability guidelines, the organisation should be aware about the environmental impacts from damages and how to manage environmental risks associated with the industry. Collaboration within the sector enhance knowledge exchanges and push the industry towards more sustainable practice.
Sustainability in premium management
We have gone one step further in the value chain to assess how insurance companies influence other companies’ sustainability work, that is, how the manager of insurance premiums integrate ESG issues in investment decisions, and use their ownership in constituents to influence the companies to operate more sustainably.
