Manchester, UK, 10 February 2016: Until 30 January 2016, Janos Pasztor was United Nations Assistant Secretary-General on Climate Change, and had been appointed by the UN Secretary-General, Ban Ki-moon, to support efforts to achieve a successful agreement at the United Nations Conference on Climate Change (COP21) in Paris in December 2015.
In an exclusive interview immediately after COP21 with Voice, the magazine published by the International Cooperative and Mutual Insurance Federation (ICMIF) for members and stakeholders, Janos gave his assessment of the role of the insurance sector, and specifically mutuals and cooperatives, in delivering the Paris agreement.
Pasztor said that when it comes to mitigating the impact of climate change the insurance industry has an obvious and immediate financial stake in the game. By pledging a rise in its climate-smart investments at the UN Climate summit in 2014 - from USD 42 billion to USD 84 billion by end of 2015 – the insurance industry had already transformed its mainstream asset management by placing more emphasis on climate risk, and the USD 84 billion goal has already been exceeded.
Pasztor went on to say that at COP21 there is an opportunity for the cooperative and mutual insurance sector to share how it is playing a leading role in doubling the industry’s investment in Smart Risk Investing. This provided an important signal for delivering a long-term culture of ‘smarter’ investment decisions. Pasztor added that the United Nations was looking forward to the trajectory by which the insurance sector will deliver its further commitment to increase the amount invested in climate smart investments to ten times the current amount by 2020.
Pasztor spoke about the dislike that investors and those involved in the deployment of capital have for the “unknowns, saying “they like certainty and risks that can be managed”. Pasztor said “The insurance sector can help to manage and transfer risk and protect against the potential financial downside due to losses so that businesses feel more comfortable operating and continue to invest in the low carbon future. As one of the world’s largest industries, insurers are best positioned to assess and analyze risk, influence risk reduction behaviours and develop products to ensure sustainability of business models.”
Pasztor’s belief is that the insurance industry will likely play an influential part in climate change discussions as an investor and also as part of Task Force on Climate-related Financial Disclosures (TCFD) announced by Mark Carney, Chair of the Financial Stability Board, at COP21.
Other articles in this edition include:
- Exclusive CEO Profile of Romana Abdin, Simplyhealth “Refreshing and renewing the business: How Romana Abdin is leading a major strategic review”
- The Millenial Generation; Reaching tomorrow's customers today
- Technology: Are we on top of the challenges?
- Recognition for the mutual model: ICMIF's Global Manifesto is a rallying call for action
UN Secretary-General Ban Ki-moon announced in January that Janos Pasztor of Hungary would become Senior Adviser to the Secretary-General on Climate Change. In his new role as Senior Adviser to the Secretary-General on Climate Change, Mr. Pasztor will support efforts of the Secretary-General to mobilize world leaders and all sectors of society to implement the landmark Paris Agreement.
For more information or to arrange interviews, please contact:
Liz Green, Senior Vice-President, External Relations, ICMIF, firstname.lastname@example.org +44 7793 264 220
Alison Grant, Communications Manager, ICMIF email@example.com +44 161 952 5078
About the mutual and cooperative insurance sector
- The mutual sector holds 27% of global insurance market share by premium.
- Premium growth of the insurance sector since 2007 is 28% vs 11% in industry
- The sector’s assets of USD 8 trillion are 30% of global insurance assets and have grown by 29% since 2007
- Employment in the sector has grown by 20% since 2007 and accounts for more than one million jobs
About ICMIF (see www.icmif.org)
- ICMIF holds five years’ worth of exclusive data about the mutual sector
- With its global headquarters in the United Kingdom and regional offices in Washington DC, USA; Tokyo, Japan and Brussels, Belgium, today ICMIF represents 230 values-based insurers in 72 countries with over USD 250 billion premium income.
- ICMIF delivers unique networking opportunities, market and member intelligence and external relations services. It takes a strong lead in encouraging best practice amongst its member firms in key insurance issues, including; performance management, legal and governance, marketing, brand and reputation, reinsurance and social and environmental performance.
- ICMIF is active in the microinsurance and Takaful sectors, with Takaful providing Shariah-compliant risk amelioration products to Islamic markets
Follow ICMIF on Twitter at @ICMIF_Web