Principles for Sustainable Insurance (PSI) was established at the 2012 United Nations Conference on Sustainable Development. The PSI Initiative is administered by and set within the overall governance framework of the United Nations Environment Programme Finance Initiative (UNEP FI). PSI provides voluntary and non-binding principles and frameworks to ensure better management of environmental, social and governance (ESG) issues in the insurance industry.

The insurance industry’s core business is to understand, manage and carry risk. Through risk prevention and risk reduction and by sharing risks, the insurance industry can help protect society and foster economic development.

Sustainable insurance is a strategic approach where all activities in the insurance value chain are done in a responsible and forward-looking way by identifying, assessing, managing and monitoring risks and opportunities associated with ESG issues. Sustainable insurance aims to reduce risk, develop innovative solutions, improve business performance, and contribute to environmental, social and economic sustainability.

PSI is determined to use its intellectual, operational and capital capacities to implement the four principles across spheres of its influence, subject to applicable laws, rules and regulations and duties owed to its shareholders and policyholders. The four principles are adopted by more than 180 organisations globally and they have become insurance industry criteria for Dow Jones Sustainability Indices and FTSE4Good.

Principle 1: We will embed in our decision-making environmental, social and governance issues relevant to our insurance business.

Principle 2: We will work together with our clients and business partners to raise awareness of environmental, social and governance issues, manage risk and develop solutions.

Principle 3: We will work together with governments, regulators and other key stakeholders to promote widespread action across society on environmental, social and governance issues.

Principles 4: We will demonstrate accountability and transparency in regularly disclosing publicly our progress in implementing the Principles.

Vision:

The vision of the PSI Initiative is of a risk-aware world, where the insurance industry is trusted and plays its full role in enabling a healthy, safe, resilient and sustainable society. Its purpose is to better understand, prevent and reduce ESG risks, and to better manage opportunities to provide quality and reliable risk protection.

Principles for Sustainable Insurance Initiative has been funded by annual fees paid by signatories of the principles in the insurance industry. Find out more.