As society’s risk manager, the insurance industry has a long history of embracing practices that protect people and society from systemic threats, but as climate threats have ramped up dramatically, most insurers have been slow to adjust their business practices to reduce exposure to climate risks and help policyholders and governments to reduce their exposure.
by Doug Lynam, book author and financial professional
I’ve always hated talking about money. Growing up in a rich family, I learned through the behavior of those around me that money and materialism were evil. Instead of being used in love and service, money was weaponized and became a tool to manipulate and control behavior. So when I began studying philosophy and religion in high school and read the words of Paul the apostle, “For the love of money is the root of all evil,” I mistakenly believed Paul was right. I was a proto-monk in the making.
One of the great challenges of tackling climate change is making it real for people without a scientific background. That’s because the threat it poses can be so hard to see or feel.
In the wake of Hurricanes Florence and Michael, for example, one may be compelled to ask, “Was that climate change?” Many politicians and activists have indeed claimed that recent powerful storms are a result of climate change, yet it’s a tough sell.
September 13, 2017 /3BL Media/ - As the devastating climate change-fueled impacts of Hurricane Irma continue to unfold, and the financial costs of Hurricane Harvey continue to escalate, a network of businesses is calling on the Trump administration to reinstate the Federal Flood Risk Management Standard, known as FFRMS.
The standard requires federal agencies to take into account current and future flood risks in investment decisions related to federally-funded buildings and infrastructure, ensuring they are built to withstand growing flooding threats.
When you think about insurance companies, do you think about social impact? It’s likely not the first thing that comes to mind, but FSG client Skandia has realized the significant impact they can create by helping prevent risks rather than just insuring against them.
Through active risk prevention, insurance companies can not only improve lives and potentially make whole nations more resilient, but they actually increase their company’s competitive advantage. In other words, they apply the concept of shared value.
When it comes to addressing climate change impacts to Berkshire Hathaway’s insurance business, Warren Buffett paints a somewhat misleading picture that minimizes the business risks posed by a demonstrably changing climate. In doing so, Buffett begs serious questions about his company’s planning for climate impacts and undermines confidence in the insurance division’s climate resilience.
By applying a shared value lens, insurance companies can do more than just protect against risks. They can help prevent risks from occurring in the first place, while simultaneously creating economic value.
Skandia is a major provider of insurances and products for long-term savings and investments in the Nordics. Their development of a unique underwriting model and rehab services network enabled them to reduce preventable sick-leave time in Sweden, while dramatically improving their bottom line.
At the BSR Conference 2015, we sat down with plenary speakers and sustainability thought leaders to discuss their thoughts on resilience in their organizations and on what defines resilient leadership.
Henri de Castries, chairman and CEO of insurance company AXA, explained that resilience is a term widely familiar to and embedded in the thought process of insurers—if there is a disruption, insurers need to come up with solutions to help their clients get back to their normal lives as quickly as possible.
"Generation Lost: Engaging Millennials with Retirement Saving" is a new study by BNY Mellon and Cambridge Judge Business School, University of Cambridge that surveyed 1,253 millennials between July and September this year. In this extract from the study, BNY Mellon’s John Buckley, Global Head of Corporate Social Responsibility, talks about bringing social finance to scale.
