Bangkok--19 Mar--Krungthai-AXA Life Insurance
David Korunic, Chief Executive Officer of Krungthai AXA Life revealed AXA’s intention to promulgate the Principles for Sustainable Insurance (PSI) in Thailand in cooperation with the Thai Life Assurance Association (TLAA) and Thai General Insurance Association (TGIA) and the Office of Insurance Commission (OIC).
He stated "As insurers our business is to protect people over the long term. Therefore insurers have a responsibility to leverage their skills to help build a stronger and safer society. AXA Group was one of the founding signatories of the Principles for Sustainable Insurance on the belief that its objectives matched those of AXA’s Corporate Responsibility. As a group we believe that by integrating environmental, social, and governance (ESG) issues into decision-making across the insurance value chain, we will contribute to a more sustainable insurance industry. And I have been involved with these Principles since taking on the CEO role and have had many interactions since with the United Nations Environmental Programmes (UNEP) and I am convinced that this is the right thing to be doing”.
There are 4 basic Principles for Sustainable Insurance – (1) Insurers will embed environmental, social, and governance issues into their decision making; (2) Insurers will work with all clients and partners to raise awareness of environmental, social, and governance issues and where possible develop solutions; (3) Insurers will work together with governments, regulations etc. to promote widespread action across society on environmental, social, and governance issues; and (4) Insurers will demonstrate accountability and transparency in regularly disclosing progress in implementing the Principles.
The vision of the principles 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.
The purpose is to enable the global insurance industry to better understand, prevent and reduce environmental, social and governance risks, and better manage opportunities to provide quality and reliable risk protection.
Currently 42 insurance companies worldwide have become signatories along with 26 supporting organisations. The UNEP’s goal is to have 100 insurer signatories and 60 supporting signatories by 2016.
Korunic stated “I am very proud of the way in which AXA globally as well as here in Thailand through its three entities; Krungthai AXA Life, AXA General Insurance and AXA Assistance, have stepped up to the challenge of the PSI. The AXA Group initiated in 2008 the AXA Research Fund to focus on longevity, environmental and societal risks. To date the group has committed €200m to the fund to be utilised up till 2019. In Thailand as elsewhere in the world we work with NGO CARE International on Where the Rainfalls project. Our work with communities around Thailand in Giving Opportunity for sustainable income development is a prime example of how we work within the principles. We do not just give opportunity but we also look at the full spectrum of impacts to the environment of our communities and where necessary conduct environmental impact studies to ensure how we work with communities do not have a future impact on the health and environment.”
In addition “Many insurers in Asia are unaware of the principles and it is the duty of the founding member companies to educate the industry and about them. I am hopeful that after today that Thailand will take the lead in Asia by signing up to the Principles and taking a stance on environmental, societal and governance issues,” said Korunic.
Pravej Ongartsittigun, the Secretary-General of the Office of Insurance Commission ended that "I am impressed to see that internationally insurance companies are considering the issues of the environment, society and governance as these all are related to the risks that insurance companies are involved in on a daily basis whether they are life insurers or general insurers or health insurers. The Office of Insurance Commission over the past 6 years has been strengthening regulations in relation to risks and the Principles for Sustainable Insurance are an extension to support the regulations."