ESG in Underwriting activities
For the Unipol Group, finding insurance solutions and services that can give a response to social and environmental issues by supporting customers and the community is a key lever for creating shared value between the Company and its stakeholders.
The Group has formalised UNDERWRITING GUIDELINES WITH REFERENCE TO ENVIRONMENTAL, SOCIAL AND GOVERNANCE FACTORS, addressed both to the Non-Life Business ("ESG NON-LIFE UNDERWRITING POLICY") and to the Business Life ("ESG LIFE UNDERWRITING POLICY"). These Guidelines promote:
- the integration of ESG factors into the insurance core business processes and strategies;
- the adoption of an ESG risk identification and monitoring system in the various business sectors;
- the implementation of a management approach that enables correct and timely assessment of risk exposure, setting out responsibilities and resulting actions.
According to a proprietary method based on the examination and adoption of a wide variety of sources, Unipol has adopted a classification that gives general indications on the exposure of each business sector to the various ESG risk categories. This classification shows the business sectors where there may be an ESG risk whose potentially negative implications on business it is appropriate to investigate according to the probability of occurrence and potential impact thereof on the Company.
With reference to sectors that, based on the classification of ESG risks referred to in the preceding paragraph, are shown to be those that have a potentially high exposure to numerous ESG risk areas, the Group has established:
- the exclusion of entities and/or risks that the Group aims to underwrite, in the event that the sectors incur ESG risks that are not compatible with the Unipol Group's sustainability approach and risk management objectives; this, for example, occurs for companies that derive a preponderant or significant part of their revenues from coal mining and for those that adopt unconventional mining practices; for companies that develop and produce unconventional weapons and/or weapons banned by international treaties and for those that ship them to conflict areas or countries that perpetrate systematic violations of human rights; for commercial activities solely carried out for the purpose of gambling (such as VLT rooms and the like);
- an assessment path that may, through the appropriate processes, tools and bodies made available by the Group, lead to the decision whether or not to continue the business relationship with a potential customer, once the ESG risks connected to business management methods in a number of sectors considered to be sensitive (such as, for example, construction and transport) have been taken into account.