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Sustainable Insurance Assessment: Towards an Integrative Model

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Abstract

This paper investigates the corporate social responsibility of insurance companies. The assessment procedures available today do not use environmental, social and governance (ESG) risk variables. We propose an integrative model to understand how progress in ESG risk underwriting can influence the management of ESG issues in insurance operations. This model was developed and tested by conducting a survey of 98 insurance professionals in Brazil. The model indicates only environmental and governance constructs as measurement discriminants. We have found a positive relationship between company size and progress in ESG risk underwriting and ESG issues in insurance operation management constructs. Additional analysis of the gap between ESG risk materiality and product offer provides a road map for harnessing local opportunities.

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Notes

  1. IUCN (1980).

  2. Pezzey (1997).

  3. Van der Vorst et al. (1999); Giddings et al. (2002).

  4. Daly (1990); Lélé (1991); Mebratu (1998); Reddy and Thomson (2015).

  5. Van Marrewijw (2003); Waddock (2004).

  6. Obalola (2008).

  7. Montiel (2008).

  8. Metcalf and Benn (2013).

  9. Scholtens (2011).

  10. Godfrey et al. (2009).

  11. Crane et al. (2008); Aguinis and Glavas (2012).

  12. Marom (2006); Husted et al. (2015).

  13. Porter and Kramer (2006); Busco et al. (2007).

  14. Baumgartner and Ebner (2010).

  15. Scott (2003).

  16. Arena (2008).

  17. Maslakovic (2013).

  18. Staib and Puttaiah (2014).

  19. Orie (2012).

  20. Scordis et al. (2014).

  21. Geneva Association; Climatewise (2012); SwissRe (2016).

  22. Arun et al. (2012).

  23. UNEP FI (2009).

  24. UNEP FI (2012).

  25. Scordis et al. (2014), p. 267.

  26. Callado and Fensterseifer (2011).

  27. Lapinskaite and Radikaite (2015).

  28. Olowokudejo and Aduloju (2011).

  29. Scholtens (2011).

  30. An exclusive Brazilian product, similar to a fixed-rate investment associated with a lottery prize.

  31. CNseg (2016).

  32. Karlsson et al. (2007).

  33. Tirole (2001).

  34. Epstein and Widener (2010).

  35. Johnson (1971).

  36. Freeman (1984).

  37. Elkington (1998).

  38. Lele (1991); Jacob (1994).

  39. Epstein and Roy (2003); Lemme and Wajnberg (2009); Shalchian et al. (2015).

  40. Vose (2008).

  41. Hoon Oh et al. (2013).

  42. UNEP FI (2012), pp. 4–5.

  43. Shea and Hutchin (2013).

  44. Lemme and Wajnberg (2009).

  45. CNseg and Consulting (2012a).

  46. CNseg and BSD Consulting (2012b).

  47. For more information on this project: http://www.portoseguro.com.br/servicos/renova-ecopecas/sobre-o-produto. Accessed in 10/11/2016.

  48. Scholtens (2011, p. 155).

  49. Monteiro and Galiza (2016).

  50. Babbie (2001).

  51. Bagozzi et al. (1991; Chimenti et al. (2014).

  52. Jöreskog and Sörbom (1989); Byrne (2001).

  53. The Likert scale is a technique for assessing attitudes (Likert, 1932).

  54. Aaker et al. (1995).

  55. Hair et al. (2009).

  56. Churchill (1979).

  57. Bagozzi et al. (1991); DeVellis (1991); Garver and Mentzer (1999).

  58. Kline (1998); Byrne (2001).

  59. UNEP FI (2009); Scholtens (2011); Scordis et al. (2014).

  60. Malhotra (2012).

  61. Hair et al. (1998).

  62. UNEP FI (2004); UNEP FI (2009); Cunha (2013); PRI (2015).

  63. UNEP FI (2009); Hoon Oh et al. (2013; CNseg (2016).

  64. Product group definition follows SUSEP’s (2012) guidelines.

  65. SUSEP’s (2014).

  66. Morosini (2016).

  67. Developed countries have three ESG risks with the same minimum score; we have highlighted the one with the lowest mean.

  68. Geneva Association, Lloyd’s (2014).

  69. Byrne (2001).

  70. Kline (1998); Byrne (2001); Chimenti et al. (2014).

  71. UNEP FI (2004); UNEP FI (2009); Cunha (2013); PRI (2015).

  72. Bagozzi et al. (1991); DeVellis (1991); Garver and Mentzer (1999).

  73. Porter and Kramer (2006); Busco et al. (2007).

  74. UNEP FI (2015).

  75. Margulis et al. (2011).

  76. Bautzer and Alves (2015).

  77. Nogueira and Blount (2016).

  78. Shea and Hutchin (2013).

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Acknowledgements

This research would not have been possible without the accessibility and commitment of insurance professionals, and the contribution of CNseg, especially the Sustainability Committee. The authors would like to thank the support of the Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq), The World Academy of Sciences (TWAS), the Fundação de Amparo à Pesquisa do Estado do Rio de Janeiro (FAPERJ) and the Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (CAPES) for this research. We thank you all.

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  1. Energy Planning Engineering, COPPE, The Alberto Luiz Coimbra Institute for Graduate Studies and Research in Engineering of The Federal University of Rio de Janeiro, Rio de Janeiro, Brazil

    Flávio G. Nogueira & André F. P. Lucena

  2. COPPEAD Graduate School of Business, The Federal University of Rio de Janeiro, Rio de Janeiro, Brazil

    Roberto Nogueira

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Correspondence to Flávio G. Nogueira, André F. P. Lucena or Roberto Nogueira.

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Nogueira, F.G., Lucena, A.F.P. & Nogueira, R. Sustainable Insurance Assessment: Towards an Integrative Model. Geneva Pap Risk Insur Issues Pract 43, 275–299 (2018). https://doi.org/10.1057/s41288-017-0062-3

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