In the face of the COVID-19 pandemic, transport companies must adhere to their commitment to building a sustainable future. They should turn into sustainable insurance companies.
The COVID-19 pandemic has delivered a huge challenge for insurers. They have had to climb to support their customers, manage their business and assess risks in new ways.
In the midst of this upheaval, it is important for insurers to remain focused on their long-term goals. And no goal is more important than building a sustainable future. Calls for companies to increase their support for sustainability come from all walks of life ̵
Many large insurance companies have already increased their commitment to sustainability. They realize how important it is for the future of their business. In particular, they understand its implications for managing increasingly complex risks and developing new business solutions.
All insurance providers should strengthen their commitment to human, social, economic and environmental sustainability. They need to turn into "sustainable insurance companies".
What is a "sustainable insurance company"?
Sustainable insurance companies put sustainability at the core of their corporate strategies. They consider how their actions affect the environment and local communities. They are aware of their impact on customers, business partners, shareholders and employees. And they understand that a company should never sacrifice sustainability in the pursuit of exponential growth.
Consumers are becoming increasingly worried about their future.
Sustainable business principles are becoming increasingly important for all organizations. Consumers, employees, investors and regulators all want to change. We found, for example, that 62 percent of consumers want companies to take a public and passionate position on social, cultural and environmental issues.
Consumers are becoming increasingly worried about their future. A staggering 73 percent of people believe that we are more vulnerable today than five years ago. This is the result of the AXA report on future risks. An even higher proportion of risk specialists agree.
Carriers that become sustainable insurance companies will join the forefront of companies working to make the world a better place. A better place for all its inhabitants. In addition, they are likely to become more successful companies.
Sustainability is good for companies.
Why is a commitment to sustainability good for companies?
Requirements for companies to address threats to sustainability will increase. Companies that start addressing these problems will have less disruption and more support than those that are slow to change. Early movements can also take the opportunity that follows from increasing concerns about sustainability.
Our research with the UN Global Compact showed that 40 percent of CEOs believe that sustainable practices are already driving up revenue. And 35 percent say such methods reduce costs. These CEOs expect further improvements over the next five years.
Smart companies use "green" energy solutions to reduce costs and increase profits. A transition to public cloud services can, for example, reduce energy consumption by up to 65 percent. It can reduce carbon dioxide emissions by almost 85 percent. In addition, investors who buy assets that meet environmental, social and governance (ESG) standards have good returns. Research firm Morningstar reports that most European ESG funds have exceeded their traditional counterparts in the last ten years.
Sustainable insurance companies can handle risks better.
For transport companies, there is another compelling reason to become sustainable insurance companies. They can better manage risks.
Sudden changes in climate, geopolitical upheavals and demographic changes increase the scope and complexity of risk management. Such risk drivers are often interconnected. Insurers who put sustainability at the heart of their business strategies can improve risk assessment and pricing.
Carriers such as AXA, Allianz, Zurich and Generali have launched a variety of sustainability initiatives. One of the major challenges for progressive insurance companies is the integration of sustainable practices into their organizations. Insurers who receive this right will have an advantage over competitors.
Consumers will push insurers to increase their commitment to sustainability. Our financial consumer survey [Link] found that young consumers like digital experiences that encourage sustainable practices (see illustration below). A huge 67 percent of consumers between the ages of 18 and 24 found such help appealing. On the other hand, only 39 percent of people over the age of 65 agreed. This generation gap is 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 aged 41 to 70 were not so anxious. Only 39 percent would pay extra.
At Accenture, We recently increased our commitment to sustainability. We appointed a senior executive, Peter Lacy, to oversee our sustainability initiatives. We also set aggressive goals to reduce carbon dioxide emissions, limit waste and manage water resources better. Accenture has also intensified its work with customers to help them achieve 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 will discuss why ecosystems are critical for carriers who want to turn into sustainable insurance companies. In the meantime, you can find lots of information on sustainable business practices in the links below. Or send me a message. I want your comments or ideas on this important issue. Be careful.
Decade to Deliver: UNGC-Accenture Strategy CEO Study on Sustainability.
The Green behind the Cloud.
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