Insurance Products with social and environmental value
As part of our range of solutions, we are committed to developing and promoting some solutions with high added value from a social and environmental perspective.
By their very nature, our insurance products have great social and environmental value as they constitute a concrete response to the protection requirements of customers and the growing needs of society, contributing to the prevention and mitigation of risks. However, there are products which, due to the type of customer protected or coverage supplied, have specific social or environmental characteristics.
As part of the Generali 2021 strategy, the Group is committed to increasing premiums deriving from insurance products with social and environmental value by 7-9% in the next three years.
Products of significant social value
- products that respond to the needs of specific categories of customers or particularly unfortunate events in life, including products dedicated to the young, to the elderly, to the disabled, to immigrants, to the unemployed and to coverage for professional disabilities, or which in some way support and foster social inclusion; products that promote a more prosperous and stable society, with particular attention on small and medium-sized enterprises and people involved in voluntary work; products with high pension or microinsurance content
- products that promote responsible and healthy lifestyles, leveraging on the opportunities provided by new technologies, on the importance of preventive healthcare or other virtuous behaviours of policyholders
- products that supplement the public health service, designed to help manage the costs of treatment and assistance, as well as the reduction in earnings of customers in the event of serious illnesses or the loss of self-sufficiency
To expand access to insurance protection, we have developed microinsurance projects. In India in recent years, agreements have been reached with leading microfinance institutions, which operate in rural areas, providing coverage to a large number of people on low incomes. In 2019, almost one and a half million people were insured.
In 2019, premiums of €13,864.7 million were collected from products with social value and the impact of products with social value on the total Group premium volume was 20.9%.
Products of significant environmental value
To encourage the adoption of environmentally friendly behaviours, we design and distribute products and services with specific environmental value:
- products designed to promote sustainable transport with reduced environmental impact, including policies for electric and hybrid vehicles and policies that reward low annual mileage and responsible driving
- products that support the energy efficiency of buildings, for which we also provide customer consultancy to identify opportunities for optimising domestic energy consumption
- products for covering the risks connected with the production of renewable energies. The insurance policies covering equipment for the production of renewable energy guarantee compensation for damage caused to solar or photovoltaic panels, or similar equipment, by the weather. These policies may be expanded to include cover for lost profits following the interruption or reduction of electricity production
- products specifically designed to cover catastrophe risks or specific environmental damage
- anti-pollution products, such as third-party liability policies for pollution covering the reimbursement of costs for emergency or temporary measures to prevent or limit compensable damages.
In 2019, premiums of €1,359.5 million were collected from products with environmental value, with an impact from products with environmental value on total Group P&C premiums volume of 6.7%.
Given the strong emphasis that the Group places on these themes, an interfunctional working group was established with technical and socio-environmental expertise. This working group meets regularly to assess the adequacy of the definitions of products with social and environmental value and in 2019 focused on reformulating the definitions to incorporate the requests of various stakeholders and reflect changes in market trends in the area of sustainability. The change in the premium from products of social and environmental value was therefore calculated with respect to the restated 2018 figure.
The perimeter was extended to all subsidiaries of the Parent Company consolidated on a line-by-line basis.
* The definitions of social and environmental products were reviewed in 2019 in order to meet the different stakeholders’ requests and reflect the market evolution in terms of sustainability. Therefore, the change in premiums from social and environmental products is calculated on 2018 data restated. Premiums from social and environmental products refer to a higher number of consolidated companies compared to 2018 that represents 98.5% of the total gross direct written premiums.
As for premiums from environmental products, the premium from multi-risk policies covering NATCAT events only refers to the NATCAT guarantee. If the premium cannot be split into green-related component and other components, only the premium from the policies which are predominantly providing a green coverage or service is reported.