Little known about how insurers are underwriting for environmental sustainability: report

Insurers could do more when it comes to reporting their approaches for underwriting environmental sustainability or sustainable claims management, a report commissioned by The Co-Operators found. The Co-Operators commissioned an international scan of sustainability practices of 17 companies, including 13 insurance/financial companies and three non-insurance companies. The study was based on publicly available information, primarily 2008 sustainability reports supplemented by Web site information.Strong practices exist in the area of sustainability governance systems, carbon management, product and service development and sustainable investing, the report says. “It is notable, however, that there is very little reporting on how insurance companies are approaching underwriting for sustainability or sustainable claims management – these are likely two areas where sustainability leadership will emerge in the future.” Researchers found efforts are underway to incorporate impacts of climate change and climate risks into the underwriting process. But, as of yet, underwriting for sustainability “is not a well-developed practice area for insurance companies.”The full report can be found at: http://www.cooperators.ca