The Swedish Consumer Insurance Agency recently conducted an independent comparison of how Swedish non-life insurance companies work with sustainability in different areas. The comparison shows major differences between the companies and Swedish ICMIF member Folksam came out very well and is at the forefront in many areas of sustainability.
The Swedish Consumers’ Insurance Bureau compared how 10 non-life insurance companies that offer housing insurance (home, villa or holiday home insurance) work towards sustainability. The companies were asked to report what they do towards loss prevention measures; how they handle claims; and whether they invest insurance premiums in a sustainable way.
“At Folksam, we have proactively worked on sustainability issues for more than 50 years. With this type of award, we can make this clear to our customers and the 1.8 million plus households that currently have their home insurance with us. In order to be part of the necessary transition to a more sustainable world, we need as many people as possible to make more conscious choices – this type of comparison is important for this,” says Karin Stenmar, Head of Sustainability at the Folksam Group.
Folksam was the first to get insurance policies labelled with the “Good Environmental Choice” branding back in 2011. Below are brief descriptions of some of the initiatives that are being pursued in various sustainability areas by the mutual insurer.
Reuse and environmentally adapted repair
Every year, Folksam pays approximately SEK 1 billion for construction repairs and more than SEK 2 billion for car repairs. Folksam is therefore also in a position to place high environmental demands on suppliers who repair customers’ damage, from building materials to sorting the waste. Belongings, such as mobile phones, are also recycled and repaired through the mobile circle.
Responsible investments
A policy of responsible investing is also required in order for an insurance policy to receive the “Good Environmental Choice” label. Folksam’s management of insurance capital is governed by criteria including the environment, human rights and (anti) corruption. Folksam works actively to influence the companies it invests in to take responsibility for these issues. For example, Folksam Property Insurance does not invest in companies that produce tobacco; controversial weapons or munitions and military services intended for use in combat; thermal coal; or uranium. The criteria for investments in fossil energy have also been tightened. As a member of the Net-Zero Asset Owner Alliance, Folksam is working to influence its holdings to set concrete targets for an annual reduction in carbon dioxide emissions in accordance with the 1.5 degree target.
Loss prevention and information to customers
The requirements from the Swedish Society for Nature Conservation also mean that there must be strategic work in terms of loss prevention measures to avoid and reduce damage. Folksam has worked in loss prevention for a long time as part of its sustainability work. An avoidable injury is the best for people and the environment. For example, Folksam warns its customers of weather changes and, on the insurer’s website, customers can find tips on how they can, for example, climate-adapt their homes.
Folksam reports on how it works towards sustainability in its Annual and Sustainability Report. Folksam also publishes an annual climate report in accordance with recommendations from the Task Force on Climate-related Financial Disclosures (TCFD) regarding climate-related risks.
