Swiss Re is integrating sustainable practices into insurance underwriting with an innovative approach that underscores the evolving role of the insurance sector in promoting environmental and societal resilience.
Swiss Re’s commitment to sustainability is embedded in its vision to make the world more resilient. The company has identified two primary goals: advancing the net-zero transition and building societal resilience. These objectives are closely aligned with specific United Nations Sustainable Development Goals (SDGs), particularly those related to health, economic growth, and climate action.
A significant focus for Swiss Re is transforming its underwriting portfolio to support the net-zero transition. This involves a comprehensive approach, encompassing both risk management and opportunity exploration. Swiss Re employs an evolving environmental, social, and governance (ESG) risk framework to guide its underwriting decisions, ensuring a dynamic and responsive strategy to environmental challenges.
Swiss Re’s commitment to societal resilience is evident in its underwriting practices. The company actively seeks to contribute to societal well-being, going beyond risk avoidance. This is reflected in its underwriting across various sectors, with a keen focus on thermal coal and oil and gas policies, reflecting the company’s commitment to environmental stewardship and societal impact.
The path towards sustainable underwriting is marked by challenges, particularly in data availability and treaty underwriting. Swiss Re, however, has shown innovation and adaptability. Examples of its work include supporting renewable energy projects in South Korea, offering credit protection for renewable energy investments in Germany, and providing parametric earthquake cover in Asia. These initiatives highlight Swiss Re’s dedication to sustainable solutions.
Swiss Re also emphasises inclusivity in its insurance solutions. The company has developed microinsurance products specifically for women in Africa and has tailored insurance for people living with HIV. These efforts demonstrate Swiss Re’s commitment to reaching underserved communities and using insurance as a tool for social empowerment and resilience.
Swiss Re’s integration of sustainability into its underwriting practices represents a significant shift in the insurance industry. By balancing environmental and social risks with opportunities for positive impact, Swiss Re is leading the way in sustainable insurance practices. Its approach not only aligns with global sustainability goals but also illustrates the influential role of the insurance sector in fostering a resilient and sustainable future.
