Review the event
The insurance industry offers a powerful engine to implement the climate transition due to its (global) size, its know-how in managing long-term risks and the multiple roles it plays in the economy. Thanks to their expertise in risk pricing and their investment capacities, insurance companies are capable to structurally influence the behaviour of economic players while supporting their development.
At least four levers are available to them. First, insurance companies can reduce the fossil fuel exposure of their underwriting strategies and their investment portfolios. Second, they can reward good ESG practices by developing incentive pricing strategies for certain business sectors. Third, insurers can directly integrate ESG factors by creating a “responsible” and “green” product offering for policyholders. Finally, they can play a role in prevention across their entire value chain, supporting both customers and suppliers in their move towards more sustainable business models.
However, these strategies are confronted to several ethical challenges. First, the multiplication of climatic disasters in certain regions increases insurance premiums to such a level that certain categories of the population are no longer able to insure their property, which fuels a global “insurance protection gap”. The climate crisis therefore entails a risk of exclusion of certain populations. Second, despite calls to stop opening new coal mines or new gas or oil drilling, some insurance companies continue to support these activities, paradoxically reinforcing the same risks that they are trying to reduce. Third, the advent of big data in insurance opens new opportunities: a better understanding of the risks and new and tailor-made solutions. However, this trend may fuel discrimination towards certain societal groups. For example, people living in underprivileged areas may pay higher insurance premiums as they are likely to face higher risks.
The webinar discusses these and several other ethical challenges on insurance companies’ journey to sustainability.
- Prof. Johannes Brinkmann, prof. Emeritus – Department of Strategy and Entrepreneurship, Norwegian Business School
- Prof. Aaron Doyle, Associate prof. at Carleton University
- Ms Aurélie Fallon Saint-Lo, Head of P&C Underwriting and Business Strategy for Climate and Sustainability at AXA
- Prof. Paula Jarzabkowski, prof. of Strategic Management at University of Queensland
- Ms Henriette Saether Tveit, Director, Partner Eco-systems & Direct
- Prof. Paul H. Dembinski, Director of the Observatoire de la Finance and prof. at University of Fribourg
|Prof. Johannes Brinkmann
Johannes Brinkmann, PhD, professor (em.) at the BI Norwegian Business School in Oslo, with ethics of insurance and risk as one of his key research interests. For further information see his website.
|Prof. Aaron Doyle
Aaron Doyle is an associate professor of Sociology and Criminology at Carleton University in Ottawa, Canada. He has published two books and a number of articles and chapters on the sociology of the insurance industry.
|Ms Aurélie Fallon Saint-Lo
Aurélie Fallon Saint-Lo focuses on integrating sustainability and climate strategy in P&C underwriting at AXA. Main aeras of focus are Net zero Insurance Alliance, TNFD, ESG policies and Green business development. Prior to this position she has lead environmental insurance business during more than 12 years. An environmental engineer by trade, she has worked with industrial groups before specializing in environmental insurance and sustainability P&C underwriting.
|Prof. Paula Jarzabkowski
Paula Jarzabkowski is Professor of Strategic Management at University of Queensland and an expert in cross-partnerships to address insurance protection gaps. Her forthcoming book on this topic, Disaster Insurance Reimagined, will be released by Oxford University Press in 2023.
|Ms Henriette Saether Tveit
Experienced commercial executive with a demonstrated history of delivering profitable growth in Norway and internationally in a variety of industries. 12 years of experience working with Commercial Strategy & Business Model Innovation to enhance competitive advantages. Dedicated to contribute to the transition towards responsible, and sustainable business models. MBA in Sustainable Business Strategy 21/22 @NHH.