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Green Insurance: A Roadmap for Executive Management

Author

Listed:
  • Lukas Stricker

    (Institute for Risk & Insurance, ZHAW School of Management and Law, Technoparkstrasse 2, 8401 Winterthur, Switzerland)

  • Carlo Pugnetti

    (Institute for Risk & Insurance, ZHAW School of Management and Law, Technoparkstrasse 2, 8401 Winterthur, Switzerland)

  • Joël Wagner

    (Department of Actuarial Science, Faculty of Business and Economics (HEC Lausanne), University of Lausanne, Chamberonne—Extranef, 1015 Lausanne, Switzerland
    Swiss Finance Institute, University of Lausanne, 1015 Lausanne, Switzerland)

  • Angela Zeier Röschmann

    (Institute for Risk & Insurance, ZHAW School of Management and Law, Technoparkstrasse 2, 8401 Winterthur, Switzerland)

Abstract

Anthropogenic climate change is accelerating, and severe and widespread consequences are expected in many areas. Although the insurance sector is not closely associated with any of the sustainability dimensions, expectations may change rapidly. Against this background, we analyze the role of insurers, especially in the property and casualty areas, in addressing the environmental and climate risk challenges and developing a truly sustainable, environmentally friendly business model—green insurance. Building on the Principles of Sustainable Insurance set by the United Nations, we develop a comprehensive roadmap along the insurance value chain for executive management to design their company’s sustainability efforts, with special focus on property and casualty. The roadmap indicates actions to be taken as well as metrics to be managed in product development, marketing and sales, risk management and underwriting and operations and claims management towards green insurance. The existing products, risk appetite and operational processes must be reviewed to support sustainability goals and include the full portfolio of activities, including claims. The time to act is now, the sustainability journey is complex and the proposed business model transformation should provide benefits for early movers.

Suggested Citation

  • Lukas Stricker & Carlo Pugnetti & Joël Wagner & Angela Zeier Röschmann, 2022. "Green Insurance: A Roadmap for Executive Management," JRFM, MDPI, vol. 15(5), pages 1-19, May.
    • Handle: RePEc:gam:jjrfmx:v:15:y:2022:i:5:p:221-:d:818002
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    References listed on IDEAS

    as
    1. Martin Eling & Martin Lehmann, 2018. "The Impact of Digitalization on the Insurance Value Chain and the Insurability of Risks," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 43(3), pages 359-396, July.
    2. Nicos A. Scordis & Yoshihiko Suzawa & Astrid Zwick & Lucia Ruckner, 2014. "Principles for Sustainable Insurance: Risk Management and Value," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 17(2), pages 265-276, September.
    3. Michael Cappucci, 2018. "The ESG Integration Paradox," Journal of Applied Corporate Finance, Morgan Stanley, vol. 30(2), pages 22-28, June.
    4. Martin Eling & Mirko Kraft, 2020. "The impact of telematics on the insurability of risks," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 21(2), pages 77-109, April.
    5. Shea Matthew & Hutchin James W., 2018. "The Importance of Environmental, Social, and Governance Risks to Surety Underwriters," Asia-Pacific Journal of Risk and Insurance, De Gruyter, vol. 12(2), pages 1-14, July.
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    Cited by:

    1. Haiyan Shang & Susu Wang & Shuwen Chen & Roengchai Tansuchat & Jianxu Liu, 2023. "North–South Differences and Formation Mechanisms of Green Finance in Chinese Cities," Sustainability, MDPI, vol. 15(19), pages 1-21, October.
    2. Carlo Pugnetti & Sebastian Barth & Lukas Stricker, 2023. "Customer Expectations for Sustainability in the Swiss Insurance Market," Sustainability, MDPI, vol. 15(11), pages 1-16, June.

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