Principles for Sustainable Insurance (PSI)
In 2020, Fubon Insurance introduced the Principles for Sustainable Insurance (PSI) Initiative launched by the United Nations Environment Programme (UNEP) to make its operations and governance more sustainable and align itself with international practices. By identifying, assessing, managing and monitoring risks and opportunities associated with ESG issues, Fubon Insurance is hoping to improve business performance, develop innovative solutions, incorporate sustainability principles in its business and products, and join efforts to lead the industry in developing sustainably. Fubon Insurance voluntarily follows the four principles set out by the PSI, and has published a PSI Report. A summary of the PSI Report is as follows:
|Embedding ESG issues into corporate decision-making and building internal ESG capacity||
As part of its sustainability strategy, Fubon Insurance pursues the six major strategies of the “ESG Visioning Project” launched by Fubon Financial Holdings, and takes part in some of the six “ESG Task Force” teams. In 2019, Fubon Insurance set up a “Sustainability Strategy Task Force” led by senior executives to take stock of and devise development plans for Fubon Insurance’s key sustainability businesses.
Risk management: Fubon Insurance identifies emerging risks, climate risks, and catastrophe risks concerning ESG issues, and conducts situational stress tests on a regular basis.
ESG capacity building: Fubon Insurance has also developed ESG-related job-specific training, designed to help employees integrate ESG principles into customer service as they gain knowledge and put their expertise into practice.
|Integrating ESG issues into underwriting, claims and investment management||
Underwriting management: Fubon Insurance has put in place a reporting process for cases with high ESG-related risks and an Underwriting Committee to monitor the risks. Coverage amounts are adjusted according to such factors as the business involved, ESG-related risk levels, the items covered and the scope of the coverage. The authorization level varies with each insurance limit, which is standardized and documented in table showing levels of responsibility. Cases involving a significant coverage amount or special cases will be forwarded to the Underwriting Committee for an assessment, if further discussion on the attribution of risk is required.
Claims management: Fubon Insurance not only provides multiple claims channels, such as through its website or app, intelligent customer service solution, or customer service hotline, but also delivers helpful niche services such as instant claims settlement on overseas flight delay insurance, the immediate rescue services, and on-the-spot payments at the scene of an accident.
Investment management: Fubon Insurance has established an ESG-integrated investment management mechanism based on the PRI principles.
|Providing sustainable products and services and raising clients’ ESG awareness||
ESG-related products: Fubon Insurance offers sustainable products and agriculture insurance. Sustainability-related products include: Eco-friendly Car Insurance, Fubon Usage- based Insurance, Environmental Pollution Liability Insurance, Green Energy Insurance Project, Epidemic Insurance and microinsurance. The different types of agriculture insurance include: Typhoon and Flood Agricultural Facilities Insurance and coverage for agricultural and fishery products such as pears, rice, bananas, grouper, milkfish, bass and tilapia.
ESG-related services: Thanks to loss control technologies, Fubon Insurance can help clients quickly rebuild their businesses and reduce capital expenditures, limiting potential risks and damage when accidents occur. Fubon Insurance also delivers a variety of low-carbon services that reduce carbon’s toll on the environment.
Exerting the influence of ESG: Fubon Insurance raises awareness of ESG issues among clients by holding corporate loss control seminars and events on agriculture insurance and the prevention of auto insurance losses.
|Working together with industries, the public sector, universities and other key stakeholders to promote widespread action across society on ESG issues||
Public sector: Fubon Insurance has teamed up with the Council of Agriculture to develop agriculture insurance and supports the development of Taiwan’s green energy industry in line with national energy policy.
Academic and research institutions: Fubon Insurance has developed a sustained partnership with institutions such as the Taiwan Agriculture & Building Center, the Disaster Management Society of Taiwan, the National Center for Research on Earthquake Engineering, the National Science and Technology Center for Disaster Reduction, National Taiwan University, National Central University, and the National Fire Protection Association. Fubon Insurance engages in in-depth technical cooperation and exchanges with these institutions through contractual or technical cooperation arrangements to improve the professional skills of loss control engineers and develop quantitative assessment systems.
Industry associations: Fubon Insurance also looks into potential ESG-related risks across industries and communicates with those associations (e.g., giving advice on loss control to Hualien stone industry players and explaining agricultural insurance to farmers and fishermen).