The role of the insurance sector in the sustainability development support was determined and the possible measures of economic and social loss reduction, based on risk management, risk transfer, and sustainable investment, were proposed. A crucial necessity of the community resilience improvement and cooperation with other stakeholders was indicated. Sustainable insurance sector plays a determinant role in the process of sustainable development as it possess vital leverages to enable and facilitate community resilience, and, therefore, to reduce the possible loss from Economic, Social and Governance issues (ESG issues). First of all, this could be achieved by the means of proper risk management, namely risk assessment and risk reduction. Second, risk transfer will help communities to cope with actual damage made and cover the loss. Finally, sustainable investment activity may be used to make sure that business sector respects the key principles of sustainable development in its day-to-day activity. Cooperation with all the stakeholders of sustainable development, especially governments and communities, will help to develop a better expertize of risk management and create more effective tools for risk reduction. Implementing principles of sustainable investment into the core of their business values, insurance companies are likely to enjoy the improvement of their image and status, higher quality of their investment portfolio, and smaller refund sums payed on claims.
Keywords: sustainable insurance, sustainability development, sustainable investments, risk management, risk transfer, Principles for Sustainable Insurance, community.
DOI: http://dx.doi.org/10.17721/1728-2667.2015/168-3/3
References
1. As World Convenes for First United Nations Environment Assembly, UN and World’s Insurers Unite to Tackle Natural
Disaster Risk. United Nations Environmental Programme, June, 2014, 3 pp. Available at http://unepfi.org/psi/wpcontent/
uploads/2014/06/201406_PSI_press_release.pdf
2. Building Disaster-recilient Communities and Economies. The PSI Global Resilient Project, PSI Principles for
Sustainable Insurance. UNEP Finance Initiative Report, June, 2014, 82 pp.
3. Baerenklau, K. A. 2005, Some simulation results for a Green Insurance Mechanism, Journal of Agricultural and
Resource Economics, Vol. 30, No 1, pp. 94-108.
4. Human Rights and Corporate Insurance, CRO Forum, November 2014, 20 pp.
5. Insuring Climate Resilience. How insurers are responding to climate change. And how they can be part of an effective
government response. UNEP Finance Initiative Report, November, 2013, 32 pp.
6. PSI Principles for Sustainable Insurance, UNEP Finance Initiative Report, June, 2012, 12 pp.
7. Song, X. and Feniosky, P.-M. 2012, Introducing the Concept of Emissions Liability Insurance in Managing
Greenhouse Gas (GHG) Emissions and Promoting Sustainability in Construction Projects. Construction Research
Congress, ASCE, pp. 1850 – 1858. DOI: dx.doi.org/10.1061/9780784412329.186
8. Swiss Re Sigma Report 2014. Available at http://media.swissre.com/documents/sigma1_2014_en.pdf.
9. Understanding the Links: Insurance Regulation and Sustainable Development, UNEP Finance Initiative, 6 pp.
Available at http://unepfi.org/psi/wp-content/uploads/2015/01/PSI-UNEPInquiry-GlobalConsultation.pdf.
10. World Bank 2014 World Development Report. Available at: http://econ.worldbank.org/WBSITE/EXTERNAL/
EXTDEC/EXTWDRS/EXTNWDR2013/0,,contentMDK:23459971~pagePK:8261309~piPK:8258028~theSitePK:8258025,00.html
