24 Jul 2015

A United Nations (UN) programme officer based in Geneva, Mr Hugo Foster says the world body has developed a framework to create voluntary and aspirational global principles.

He said the framework includes actions to better understand and manage risks and opportunities in the insurance industry associated with environmental, social and governmental issues.

Speaking at a conference organised by Commercial Risk Africa in Gaborone recently, Mr Foster said they plan to create a United Nations and global industry initiative to promote global adoption and implementation of the principles.

“Our vision is to create a risk aware world where the insurance industry is trusted and plays its responsibly in a healthy, safe, resilient and sustainable society, as presently insurance services are not trusted,” he said.

He said the UN was committed to working with governments, regulators and other stakeholders to promote action across society on environmental, social and governmental issues.

“The UN is prepared to embed in decision making of environmental, social and governance issues relevant to insurance business. We will work with our clients and business partners to raise such awareness,” he said.

He said the UN believes that the insurance industry needs to address many of the environmental challenges that the world faces today, adding that the industry was best known for its role which was relevant in addressing the developmental agenda, transferring risk in the form of insurance.

“On the global scale, the world is already reaching planetary limits. Science is upset that we are potentially affecting the entire atmosphere, through which human beings have so much influence,” he said.

He cited climate change, natural disasters and water scarcity as examples of environmental, social and governance issues relevant to insurance. Ends