Leading with purpose was the overarching theme for the ICMIF Centenary Conference: but what does it mean to our member organisations? Does it make good business sense and are we seeing a permanent move in the insurance sector towards an awareness of its impact in and for society? How can insurance companies build resiliency in our communities and tackle the challenges posed by climate change? Are we doing enough as an industry collectively and individually?

For Folksam, founded more than 100 years ago with the purpose of providing insurance for those with no access, today their vision is that customers should feel secure in a sustainable world. For their CEO, Ylva Vessen, it means trying to lead with good examples such as their recent initiative to include Ukranian refugees in customers’ home insurance cover. These initiatives are good for business, good for the customer, and good for the world.

Working with prevention is essential business for Folksam. Investing in the construction of protective walls for areas at high risk of flooding, investing in infrastructures and then insuring those structures makes good business sense. Referencing the UNDP 2021/2022 Human Development Report launched that week, Ylva believes it is as simple as “TINA – There Is No Alternative” to working with prevention and this is the time for insurance leaders to be breaking new ground, being perfectly placed to have a positive impact on the report’s three recommendations to shape our future: Investment, Innovation and Insurance.

Indeed, Folksam leads the way in responsible investing with USD 380 million invested in green bonds; a USD 100 million bond investment with the UN agency IFAD (International Fund for Agricultural Development); and is also a member of the United Nations-convened Net Zero Asset Owner Alliance committing to carbon-neutral investment portfolios by 2050.

Committing to this style of purpose-led leadership means doing things differently to achieve long-term goals even if this is not always apparent in the short-term. One such an example is Folksam’s recent investment in a steel company, one of Sweden’s largest emitters of CO2. This resulted in Folksam increasing its own carbon footprint by 5%, a move which some may see as unpopular. In the long-term though this investment is allowing the steel company to work towards its goal of producing fossil-free steel in 10 years which would be a game changer for the world.

Achmea‘s CEO, Bianca Tetteroo, believes that as leaders in the insurance sector we can make a difference and that society expects this of us, especially the younger generations. Achmea’s purpose is “Sustainable Living, Together”: finding solutions for challenging issues. In the Netherlands, as in many other countries, there is an ageing population which is bringing extreme challenges for the future, especially in healthcare. Collaboration partners are the best way to find solutions to these problems and the only way forward is to keep reinventing ourselves to meet society’s needs.

However, there are definitely challenges in aligning strategy to purpose. Achmea invest in Shell Energy which has presented them with a dilemma: should they stop the investment or work together on the transition towards renewable energy sources through engagement with Shell? Achmea believes they can have a greater impact through engagement up to a certain point rather than stepping back from the investment. Another challenge coming from leading an organisation with purpose is the amount of great ideas that teams come forward with and the need for the leadership to always remain focussed on making profits within a sustainable, healthy business model. This means sometimes having to say no to attractive propositions.

ICMIF members collectively represent trillions of dollars of assets under management and this can be a very powerful instrument. In Achmea’s case during the COVID-19 pandemic they sent out a shareholder resolution to the pharmaceutical industry in the Netherlands asking many investors to collaborate together using their combined knowledge to ensure that Covid vaccines would be provided across the world. This was then embraced in the UK and USA with trillions of assets under management. In the same way, Bianca strongly believes that ICMIF members must use their combined knowledge in risk protection, risk prevention and resiliency to find new ways to build resilient communities in vulnerable parts of the world. As leaders with purpose, we have to keep raising the bar and setting ourselves ambitious goals.

Chairing the session, Rob Wesseling shared that Co-operators currently have 21% of their invested assets in externally verified impact investments such as green energy, educational opportunities and healthcare, and it is this portfolio of investments where they see the best performance. This was especially the case during the pandemic period and through the period of volatility in 2022, when the portfolio held its value better than other investments, producing higher returns and lower levels of market risk.

The continent of Africa is seeing increasing frequency and severity of natural disasters with only 2% of risks covered by insurance. African Risk Capacity (ARC) currently offers parametric insurance solutions against drought, flood, tropical cyclone, earthquake and epidemic solutions: protecting 30 million people with the ambitious goal of increasing this to 200 million people within three years. This will make a significant impact on the 700 million people in Africa whose economic activity would be disrupted by extreme weather and disease. Lesley Ndlovu explains that these ambitious goals will be achieved by working with partners to solve some of the greatest challenges on the African continent and that, as the CEO, his role is to keep a clear focus on this mission and to keep this communicated to all stakeholders at all times. Always being able to explain to employees and stakeholders the consistency of the decision-making being aligned with values can be challenging, but it is vital for success. Indeed, he believes that it will be important for the sector to tell our story more clearly and with more articulation.

As mutuals, Lesley believes that we are ideally positioned to solve our members’ problems. This has always been the reason for our existence and the proximity we have to our members puts us in a unique position to be more in tune with their requirements. Being able to solve big problems will always lead to a successful business model.

ARC collaborates with UN agencies and governments to make insurance more affordable and accessible using their scale and reach to help them provide coverage to as many people as possible. By providing governments with risk profiling information and other tools such as their parametric platforms, governments are better prepared for events such as drought and can mitigate impacts on communities. This type of public-private collaboration is vital if we are to incorporate the tools and modelling we own into frameworks that can be rolled out at national levels for maximum impact.

Gallagher Re’s business model is one of growth, having doubled in size every five years for the last 25 years through both organic growth and acquisitions. The company motto is “Face your future with confidence” which is underpinned by a set of values which have run through these acquisitions. Gallagher Re’s values have guided their decisions in some cases not to acquire some businesses if they do not share their values base. The decisions are not only taken from a commercial business standpoint but also from a desire to be working alongside like-minded organisations that share similar values. This set of values also runs through Gallagher Re’s recruitment processes. In 2023, the company will need to recruit 800-900 graduate apprentices and this younger generation newly entering the workplace want to be joining organisations with purpose. They want their endeavours to be rewarding financially but also to give wider societal benefit, a significant shift from previous generations.

In James Vicker’s opinion the insurance sector has to get better at providing more meaningful information and sharing its knowledge in risk mitigation to arrive at interesting commercial solutions more quickly. A simple example being the sharing of risk assessments on individual property to support sustainable construction for communities.

In a question posed to the delegates at the ICMIF Centenary Conference, over 95% of the audience said their organisations had embraced and articulated their purpose in recent years, with over 40% stating that their organisation’s purpose is central to their current growth strategy. If the results of the voting question are anything to go by, then the ICMIF membership can make an important impact to finding solutions to the challenges faced by communities across the world.

Rob Wesseling ended the session on a similar note by asking the audience to imagine if every business focussed on what was right for their customers; for the communities they serve; and for the global society. This would certainly create an immense power.

Session panellists

• Ylva Wessén, President and CEO, Folksam (Sweden)
• Bianca Tetteroo, Chair of the Executive Board, Achmea (Netherlands)
• Lesley Ndlovu, CEO, African Risk Capacity (South Africa)
• James Vickers, Chairman International, Reinsurance, Gallagher Re (UK)
• Rob Wesseling, President and CEO, Co-operators (Canada) moderator