37 slides from Sanlam Allianz Holdings (kenya)'s sustainability presentation, Oct 4, 2018
Slide 1: Sanlam Group initiative with the United Nations on Principles of Sustainable Insurance
Sanlam Group initiative with the United Nations on Principles of Sustainable Insurance Ian Kirk, Group Chief Executive Officer Presentation to SCOR 4 October 2018
Slide 2: Agenda
Agenda Sanlam at a glance Key risks facing the Group A move towards a resilient society The UN PSI initiative City Innovation Platform for African Infrastructure Risk & Resilience project Our contributions on ESG Conclusion
Slide 3: Sanlam at a glance
Sanlam at a glance
Slide 4: What do we do?
What do we do? We are a diversified financial services group operating over 200 businesses in 44 countries, including A leading presence in South Africa Selected emerging markets (Africa, India and Malaysia) Selected developed markets (UK, Ireland, Australia, US) We have a 100 year heritage We provi
Slide 5: An unmatched Pan-African footprint
An unmatched Pan-African footprint Sanlam has a strategic role to play in the sustainable development of emerging markets Luxembourg United Kingdom Ireland France Switzerland USA Tunisia Algeria Lebanon Morocco Niger Mali Senegal Saudi Arabia The Gambia Egypt Guinea Ethiopia Philippines Burkina Faso
Slide 6: Key risks facing the Group
Key risks facing the Group @ Sanlam CX)
Slide 7: Risks and challenges
Risks and challenges Most of the developing world in particular Africa continues to face ESG pressures Environmental catastrophes are increasing The world is experiencing its biggest wave of urban growth in human history Cities will continue to deal with water shortages and climate change as inhibit
Slide 8: The insurance protection gap
The insurance protection gap Gap between economic losses from natural catastrophe and insured losses has been increased Economic development, population growth and a higher concentration of assets in exposed areas are increasing the economic cost of the disasters The insurance protection gap for 201
Slide 9: A move towards a resilient society
A move towards a resilient society
Slide 10: Towards a resilient society
Towards a resilient society We have been insuring risks for a 100 years Risks were simpler, risks were slower The changing nature of doing insurance is upon us – risk is increasing Conventional approach for insurers is to price in the risk, passing it on the consumer Our world is facing increasing E
Slide 11: …towards a resilient society
…towards a resilient society we have to adapt to the changing environment if we are to survive another 100 years realize we need to do more than only rolling out products and services, a needexist to understand what the level of risk on the ground is This prompted Sanlam to re -examine what ESG mean
Slide 12: The foundation of Sanlam’s sustainability
The foundation of Sanlam’s sustainability Our vision is to: Our purpose is to build a world of Lead in client-centric wealth Our Purpose Wealthsmiths™, supporting people in creation, management and living their best possible lives through protection in South Africa; financial resilience and prosperi
Slide 13: The United Nations Environment Programme Principles of Insurance initiative
The United Nations Environment Programme Principles of Insurance initiative
Slide 14: The UN Environment Programme Principles of Sustainable Insurance (PSI) initiative
The UN Environment Programme (UN EP) Principles of Sustainable Insurance (PSI) initiative Launched in 2012 Currently 120 members Insurers part of PSI initiative represents over 25% of world premium and $14 trillion in AUM Largest collaborative initiative between the UN and the insurance industry The
Slide 15: Sustainable Insurance – what is meant by it
Sustainable Insurance – what is meant by it Fundamental approach behind PSI is to embed insurance with ESG issues Sustainable insurance is a strategic approach where all activities in the insurance value chain, including interactions with stakeholders, are done in a responsible and forward- looking
Slide 16: Strategic role of Insurers
Strategic role of Insurers The triple role of the insurance industry in sustainable development Risk carrier Over USD 5 trillion world premium volume code (physical risk management) Sustainable development challenges & opportunities Over USD 30 trillion global Risk manager assets under management ro
Slide 17: The sustainable insurance principles
The 4 sustainable insurance principles Principle 3: Public Principle 4: We will work together with We will demonstrate governments, regulators and accountability and transparency other key stakeholders to in regularly disclosing publicly our propose widespread action across Governments, porgrress in
Slide 18: Key UN PSI insurance industry partnerships undertaken
Key UN PSI insurance industry partnerships undertaken 2015-17 (Munich Re & IFC) 2015 (IAG) Sanlam/Santam 2015-17 Surety bond underwriting, ESG and infrastructure 2014 (IAG) 2015 (AXA) 2015 (IAG) City Innovation Platform for African Infrastructure Risk & Resilience Cities, SMEs and Climate risks
Slide 19: City Innovation Platform for African Infrastructure Risk & Resilience project
City Innovation Platform for African Infrastructure Risk & Resilience project
Slide 20: Pan-African GDP growth
Pan-African GDP growth In the case of many African countries, GDP growing faster than insurance growth 10 9 8 7 6 % yr 5 4 3 2 1 0 2012-2017 2018-2022 Source: World Bank
Slide 21: Pan-African insurance penetration
Pan-African insurance penetration Insurance penetration is low in the vast majority of African countries Insurance penetration as % of GDP 14,0% 12,0% 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% World Africa SA Namibia Botswana Morocco Ivory Coast Kenya Ghana Nigeria Life Non-Life
Slide 22: Factors impacting on resilience of African cities
Factors impacting on resilience of African cities Lagos, Nigeria Causes of Lagos urban flooding Global climate Poor urban Anthropogenic Urbanization change planning activities Construction of Land cover drainage facilities Change in weather Poor drainage Development on Increased modifications & patt
Slide 23: Impact of Climate change on African cities
Impact of Climate change on African cities Mounting concern on the impact of the climate -risk protection gap and the widening divide between total economic- and insured losses Particular concern for emerging economies due to low pre -existing levels of insurance penetration Estimated that a climate
Slide 24: Impact of Climate change on African cities
Impact of Climate change on African cities Developing economies have low levels of understanding about insurance and often struggle to make use of the insurance industry’s risk transfer and risk management capabilities Public infrastructure projects , properly implemented, play a vital role in enhan
Slide 25: City Innovation Platform (CIP) project
City Innovation Platform (CIP) project Partnership with several insurers, the UN and the University of Cambridge with the aim of ascertaining how the insurance industry can support sustainable infrastructure in emerging economy cities City Innovation Platforms Partners
Slide 26: City Innovation Platform (CIP) project: a pilot study
City Innovation Platform (CIP) project: a pilot study Pilot City – Dar es Salaam The project explored how the public and private sectors can collaborate more effectively to deliver sustainable, financeable and insurable infrastructure projects insurance data and expertise can support cities to make
Slide 27: Main outcomes
Main outcomes City officials gained a better understanding in that - City management is able to protect the city’s assets better with adequate risk management Risk transfer is attainable for large public infrastructure projects and is not a tax on poor cities as was previously perceived. It can now
Slide 28: Keys to a successful City Innovation Platform
www.cisl.cam.ac.uk Keys to a successful City Innovation Platform 4) Have a clearly defined start and end ‘7 point’ this focuses minds and reassures partners they are not locked in to an ongoing process and offer introductory sessions on the CIP. Make sure that local people and industry are represent
Slide 29: Our contributions on ESG....
Our contributions on ESG.... @ Sanlam IC)
Slide 30: Implementing the lessons learned from Dar es Salaam UN PSI
Implementing the lessons learned from Dar es Salaam UN PSI Contributing to a resilient society The UN PSI Resilient Cities project was an excellent framework to highlight our challenges and to present opportunities for our industry Via Santam we rolled out the Partnership Santam launched with the UN
Slide 31: UN PSI project to develop insurance industry standard on ESG
UN PSI project to develop insurance industry standard on ESG Contributing to a resilient society We tend to approach ESG in line with best industry practice Currently there exists no global guidance for the insurance industry on the integration of environmental, social and governance (ESG) risks int
Slide 32: Environmental-related risk management
Environmental-related risk management Contributing to a resilient society Sanlam together with FMO, the Dutch development bank, provided seed capital for the establishment of a green renewable energy fund The fund is designed to combat the detrimental effects of climate change A truly global initiat
Slide 33: Increasing insurance coverage with bespoke solutions
Increasing insurance coverage with bespoke solutions Leading with responsible products and services Through our innovative solutions we create opportunities and solutions for people in different geographies and social standing In South Africa in partnership with a Bank we recently launched a funeral
Slide 34: and in India
and in India • affordable travel insurance if you book a ticket online • for less than 1 INR (less than one USD cent) you receive 1 million INR cover (about $14 000) • 5 million policies sold per month
Slide 35: Conclusion
Conclusion Key learnings We are South African based and aspire to lead in insurance in Africa If we are to be successful in executing on our strategy, improve the quality of our business and deliver insurance outcomes in those areas we are active in (i.e. addressing low penetration rates and closing
Slide 36: thank you
thank you®
Slide 37: Sanlam Wealthsmiths
@ Sanlam IC X=) Wealthsmiths