Tag Archives: Corporate Social Responsibility

P/C Insurers and Charitable Giving: A Recap

While many parents are putting the final wrappings on gifts from Santa, we thought we’d take a moment to acknowledge the charitable giving of insurers.

As Insurance Journal reminds us here, U.S. property/casualty insurers have increased their charitable giving by an average of 15 percent since 2011, to an industry total of $575 million.

According to a 2015 McKinsey report, an increasing number of insurers are aligning their programs with their business strategy.

While the P/C industry continues to direct almost two-thirds of its giving to three areas – education, health and social services, and community needs – the emphasis has shifted since an earlier study in 2011.

Education funding declined by about half while contributions to health and social services increased by half and contributions to community needs rose by about 70 percent.

The survey also found that while insurers ranked the same three factors for determining the focus of charitable giving at the top of their list in 2014 as in 2011– serving local communities, aligning with business needs and meeting the interests of stakeholders such as employees and customers, the emphasis has shifted.

Some 28 percent of carriers now put local community needs at the top, up from 22 percent in 2011.

And increasing alignment with business needs has seen the biggest shift, with 22 percent now considering this factor most important, up from 14 percent in 2011.

The survey revealed that firms that look for such synergies are more likely to select charitable causes that could lead to opportunities for innovation or building new market knowledge.

The Insurance Journal article cites Bill Ross, CEO of the Insurance Industry Charitable Foundation (IICF):

The more closely you can align charitable giving to your business the greater value generation you will see. That alignment means a lot of things to P/C carriers.

The obvious one is disaster relief but if you look at insurance, the industry is involved with every aspect of life.”

We couldn’t have said it any better.

For information on the insurance industry’s contribution to community development see Impact, the Insurance Information Institute’s online resource.

 

Insurance Industry Gives Back

I.I.I.’s new California representative Janet Ruiz brings us this timely report  from the  insurance industry’s first  philanthropic roundtable of the new year:

The first of three 2015 insurance industry philanthropic roundtables was held earlier this week in Woodland Hills, CA at Farmers Insurance to discuss the landscape of philanthropy with the theme of disaster resilience.

Speakers at the meeting presented case studies of successes such as the partnership of Farmers Insurance with the Saint Bernard Project to rebuild Joplin, Missouri. The Insurance Information Institute (I.I.I.) discussed the role of catastrophe communications in getting important information out to media and consumers before, during, and after a catastrophe. Team Rubicon talked about their mission to bridge the gap for veterans and how they engage veterans, first responders and volunteers in rebuilding communities after a disaster.

The Insurance Industry Charitable Foundation (IICF) leads the philanthropic roundtables attended by member insurance companies involved in philanthropy and community giving. It was born out of the passion of insurance professionals to make a positive community impact.

The IICF Early Literacy Initiative and Sesame Workshop Partnership recently launched — ‘Every Day is a Reading and Writing Day’ — working to provide every American child the opportunity to read and write. As Melissa Duncan, IICF Western Division says: “Early education makes true social progress.”

Bill Ross, CEO, IICF wrapped up the roundtable by reminding all of the impact the insurance industry has giving $1 billion annually in direct giving and sponsorships to charity.

It was a powerful session!

You can read more  on the insurance industry’s contribution to community and charitable causes here.

Report: More Companies Disclosing Water-Related Risks

Companies need to undertake ongoing and more robust analysis of potential water-related risks and provide more quantitative data on overall water use and financially material risks as part of their disclosures in Securities and Exchange Commission (SEC) filings, according to a new report from Ceres.

Ceres maintains that while overall corporate disclosures of water-related risks have increased since the SEC issued its climate change guidance in 2010, most reporting remains weak and inconsistent.

In its analysis of changes in water risk disclosures by more than 80 companies between 2009 and 2011, Ceres says that reporting is lacking especially in regard to data on financial impacts, quantitative water metrics and potential supply chain risks.

Ceres notes that drought and flood cycles have led to billions of dollars in losses for corporations worldwide. Drought in China in the spring of 2012 left 3.5 million people with limited or no access to drinking water and cost the affected provinces an estimated $2.3 billion. Flooding in Thailand in November 2011 cost the semiconductor industry an estimated $15-20 billion.

Here in the U.S. in early June rain inundated the Florida panhandle and coastal Alabama, resulting in more than two feet of precipitation and at least $20 million in flood damage. The region had previously been classified as in severe or extreme drought. This has led Florida officials to call for increased disclosure of risks.

A key takeaway from the report is that significantly more companies are disclosing exposure to water risk, with a focus on physical risk. Some 87 percent of companies now report physical exposure to water risk versus 76 percent in 2009, with the biggest increases coming from the oil and gas sector, according to Ceres.

The report also finds that more companies are making the connection to climate change. In 2009, only eight of the 82 companies assessed (10 percent) disclosed that climate change posed growing physical risks in the form of water scarcity, flooding or quality issues to their operations and supply chains. In 2011, that number jumped to 22 (27 percent).

Hat tip to Business Insurance for flagging this story.

The I.I.I. has information on climate change and insurance issues.