Act now to change into a sustainable insurer
In the face of the COVID-19 pandemic, airlines must maintain their commitment to a sustainable future. You should transform yourself into sustainable insurers.
The COVID-19 pandemic has presented insurers with enormous challenges. They had to mix and match to support their customers, manage their businesses, and assess risk in new ways.
In the midst of these upheavals, it is important that insurers continue to focus on their long-term goals. And no goal is more important than building a sustainable future. Businesses from all walks of life – consumers, governments, researchers and environmental agencies – are urged to step up their support for sustainability.
Many large insurers are already increasing their commitment to sustainability. You realize how important it is for the future of your company. In particular, they record the effects on the management of increasingly complex risks and the development of new business solutions.
All insurers should strengthen their commitment to human, social, economic and environmental sustainability. They need to transform into “sustainable insurers”.
What is a “sustainable insurer”?
Sustainable insurers place sustainability at the center of their corporate strategies. They consider how their actions affect the environment and local communities. They are aware of their effects on customers, business partners, shareholders and employees. And they understand that a company should never forego sustainability in order to achieve exponential growth.
Consumers are increasingly concerned about their future.
Sustainable business principles are becoming increasingly important for all organizations. Consumers, employees, investors and regulators are calling for change. For example, we found that 62 percent of consumers want companies to be public and passionate about social, cultural and environmental issues.
Consumers are increasingly concerned about their future. An amazing 73 percent of people believe that we are more vulnerable today than we were five years ago. That is the result of the AXA Future Risks Report. An even higher proportion of risk specialists agree.
Carriers who are becoming sustainable insurers will be included in the forefront of companies working to make the world a better place. A better place for all of its residents. In addition, they are likely to become more successful companies.
Sustainability is good for business.
Why is a commitment to sustainability good for business?
The demands on companies to combat sustainability threats will increase. Organizations that begin to address these concerns will experience less disruption and more support than companies that are slow to change. Early careers can also take advantage of opportunities that arise from growing sustainability concerns.
Our research with the United Nations Global Compact found that 40 percent of CEOs believe that sustainable practices are already increasing their revenues. And 35 percent say such practices reduce costs. These CEOs expect further improvements over the next five years.
Click / tap to view a larger image.
Smart companies use “green” energy solutions to reduce costs and increase profits. Switching to public cloud services, for example, can reduce energy consumption by up to 65 percent. It can reduce CO2 emissions by almost 85 percent. In addition, investors who buy assets that meet environmental, social and governance (ESG) standards will see good returns. Research firm Morningstar reports that most European ESG funds have outperformed their traditional counterparts over the past 10 years.
Sustainable insurers can manage risks better.
There is another compelling reason for freight forwarders to become sustainable insurers. You can manage risk better.
Sudden climatic changes, geopolitical upheavals and demographic changes increase the scope and complexity of risk management. Such risk drivers are often linked. Insurers that put sustainability at the heart of their business strategies can improve risk assessment and pricing.
Carriers such as AXA, Allianz, Zurich and Generali have started various sustainability initiatives. One of the major challenges for progressive insurers is integrating sustainable practices into their organizations. Insurers who get this right gain a competitive advantage.
Consumers will push insurers to step up their commitment to sustainability.
Consumers, especially young consumers, will push insurers to step up their commitment to sustainability. Our financial services consumer survey found that young consumers like digital experiences that encourage sustainable practices (see figure below). 67 percent of consumers between the ages of 18 and 24 found this help appealing. In contrast, only 39 percent of those over 65 agreed. These generation differences are evident in our research. In another study, we found that 67 percent of people between the ages of 18 and 40 are willing to pay a premium for sustainable products. Older people, ages 41 to 70, weren’t as enthusiastic. Only 39 percent would pay extra.
Click / tap to view a larger image.
At Accenture, we recently increased our commitment to sustainability. We have appointed a senior executive, Peter Lacy, to oversee our sustainability initiatives. We have also set aggressive goals to reduce carbon emissions, contain waste and better manage water resources. Accenture has also stepped up its work with customers to help them meet their sustainability goals. It has worked on more than 500 sustainability projects with over 200 organizations over the past decade.
Critical importance of sustainability ecosystems
In my next blog post, I’ll be discussing why ecosystems are critical for transportation companies looking to transform into sustainable insurers. In the meantime, you can find plenty of information on sustainable business practices at the links below. Or send me a message. I would love to receive your comments or ideas on this important topic. Watch out.
Delivering the Decade: The UNGC Accenture Sustainability Strategy CEO Study.
The green behind the cloud.
Subscribe to more from Accenture Insurance.