Sustainability is becoming an important focus for businesses because we have a responsibility to help tackle issues such as climate change. Obviously in insurance we know climate change is not only something we have a moral obligation to help change, but it also impacts directly on businesses.
However, it is also an area which enables businesses to gain competitive advantage by attracting more customers and top workforce talent. According to Mediacom Purpose Tracker, 64% of people said brands have a responsibility to give back to society, and millennials and younger generations want to work for a company that reflects their values.
The insurance industry is already embracing sustainability, and over time there will be more societal changes which the industry will need to respond to via their insurance products. For example, people are moving to electric transport and vehicles which will need insurance products. LV=, has responded to this by creating an electric vehicle product which includes charging point recovery because they understand that one of the barriers to buying electric cars is fear of running out of charge.
Also, there is growing focus to increase recycling within the claims process by opting for restoration rather than replacement. For example, at Allianz our Green Parts scheme looks at using recycled parts within motor claims rather than replacing them with brand new.
This has been achieved through Allianz having a comprehensive global climate change strategy that focuses on three areas:
We know that our global investments can have a big impact on the transition to a carbon-free economy and that’s why Allianz is a founding member of the Net Zero Asset Owner Alliance. The Alliance is committed to tackling global warming and reducing carbon emissions through amending their investment portfolios by 2050.
Allianz is also the largest investor in renewable energy, and last year we invested 7.2 billion euros in projects such as 90 wind farms and nine solar farms across the world.
Brokers need to closely look at their business to understand where they can be more sustainable. There are two areas brokers can look at: