Sustainability in insurance operations

The Sampo Group Code of Conduct sets the guidelines for sustainable insurance operations in Sampo Group. The Code of Conduct states that the Group strives to act in the interests of its customers, providing products and services that are fair, comprehensible, and designed to help meet the evolving needs of customers. The aim is to take ESG (environmental, social, and governance) considerations, including climate change, into account in the product and service offering and insurance underwriting.

In addition to the Code of Conduct, each Group company has adopted supplementary and more detailed policies, guidelines, processes and governance structures regarding ESG integration into insurance underwriting for their own purposes. For example, If has an Underwriting Committee which acts as an advisory and preparatory body to the company’s CEO. The Committee gives its opinion on proposals to underwrite certain risks and on new products or pricing methodologies that might lead to a significant change in risk, for example. All deviations from If’s Underwriting Policy are reported to the Underwriting Committee and the Risk Committee, and material deviations are reported to If’s Board of Directors.

Sampo Group promotes sustainable insurance operations for example by

• Integrating ESG considerations into insurance underwriting (e.g. norms-based screening of corporate customers, integration of sustainability considerations into underwriting principles, pricing, and/or other relevant policies and processes),
• Providing loss prevention services (e.g. risk management services),
• Handling claims in a sustainable way (e.g. encouraging and supporting circular efforts), and
• Developing products and services in accordance with relevant legal requirements (e.g. the EU Taxonomy).

Integration of ESG into underwriting

Sampo Group has integrated ESG considerations into its underwriting standards and into the existing customer due diligence process for corporate customers. The Group’s underwriting principles include expectations on corporate customers to respect international norms and standards on human rights, labour rights, the environment, and anti-corruption, as defined by the UN Global Compact.

Sampo Group uses research and gradings from external service providers to analyse whether its corporate customers respect the UN Global Compact. If customers do not meet expectations, a further assessment will be conducted. The assessment is made, for example, based on the service provider’s research, other relevant data (e.g. publicly available information), and internal analysis.

In case of a verified violation or unsatisfactory performance, Sampo Group will initiate a dialogue with the corporate customer. The Group can, for example, insure the customer but set the company under observation; grant conditional approval for an insurance, but require the company to take action; or decide not to offer insurance for the customer or renew an already existing insurance contract. If the corporate customer does not take any corrective actions, Sampo Group will consider additional steps, including termination of the customer relationship.

Relevant Sampo Group employees receive training, for example, on the principles of the Global Compact, norms-based research, and applicable ESG frameworks.

Loss prevention services

Loss prevention is an essential part of Sampo Group’s sustainable insurance operations, as it helps customers reduce economic losses and environmental impacts. By providing loss prevention services, Sampo Group can help its customers manage risks, including those related to climate change. Below are some examples of Sampo Group’s loss prevention activities.

Property

Sampo Group offers its major corporate customers risk management services, in which a comprehensive approach is taken to understand their specific insurance and risk management requirements. Sampo Group has its own property risk engineers, who provide risk management services on site to the Group’s corporate customers. In addition, Sampo Group has access to an external risk engineering network.

To help its small and medium-sized (SME) customers avoid claims, Sampo Group offers building checks for residual buildings in Norway and Finland. Following a physical inspection, the customers receive help to identify where maintenance and fire safety measures are most needed, for example. Through the building checks and hands-on advice offered to larger SME customers, Sampo Group’s customers are made aware of risks and are provided with suggestions for mitigating actions.

Together with external partner, Sampo Group also offers house assessments to private customers who own their own house and have insurance policies with top coverage. The house assessment provides the customer with a report that helps them both plan the maintenance of the property and minimise the risk of unforeseen events. Customers can get a house assessment done every fourth year.

Mobility

As data from cars and car usage become more readily available, Sampo Group is continually looking into ways to incentivise safer driving. Usage-based insurance (UBI) programmes utilise data from cars and smartphones to enable identification of improvement potential for each individual driver and may offer incentives to improve the driving behaviour. For example, in the UK, Sampo Group encourages safer driving habits through one of its car insurance policies. Safe drivers are rewarded with lower premiums and provided with personalised tips to help improve their driving habits.

In addition, Sampo Group’s customised insurance offerings to the sharing economy and new mobility providers contribute to loss prevention through better road safety. For example, the shared cars, insured with Sampo Group, enable thousands of customers to not own their own cars, reducing the number of cars in traffic, unnecessary trips and the need for parking spaces in urban areas, which is beneficial from a road safety perspective. Sampo Group also collaborates closely with its automotive partners to improve vehicle design and understand the extent to which the safety systems work as intended.

Health

Through health insurance, Sampo Group helps its customers across the Nordics when they face health issues. The Group is, for example, supporting corporate customers in mapping the work environment requirements, and by offering their employees preventative health services. When it comes to private customers, Sampo Group provides support not only when customers face health challenges, but also when preventative measures can make a difference, thereby contributing to improved overall wellbeing.

Claims handling

Sampo Group wants to offer its customers easy and fair claims handling. The aim is for customers to receive compensation quickly, efficiently, with great service, and according to the terms of the policy. The Group uses different kinds of analyses to assess whether customers are satisfied with claims handling. In addition, Sampo Group aims to continuously improve its solutions, processes, communications, and advice related to the topic.

Due to a large number of claims each year, errors in claims handling cannot be completely avoided. When Sampo Group becomes aware of an error, it is fixed as quickly as possible. To minimise the number of errors, claims handling is continuously monitored, for example, through internal controls, dialogue with employees, and feedback from customers.

P&C insurance products and services affect the amount of resources used mainly through the policyholders’ claims related to vehicles, buildings, furniture, electronics, and other property. Sampo Group’s suppliers and business partners are central to the claims handling process, and Sampo Group is committed to taking environmental and climate considerations into account, for example, by encouraging and supporting circular efforts in these processes. Sampo Group measures the progress of its resource use and circular economy efforts, for instance, with metrics related to the share of reused parts and the share of glass repairs in car repair claims. These have been selected as key metrics, as they reflect Sampo Group’s goals of promoting circular economy and reducing resource use.

Development of products and services

Every year, Sampo Group analyses to what extent its underwriting and investment activities are Taxonomy-eligible and Taxonomy-aligned according to the EU Taxonomy Regulation. This information is reported as part of Sampo Group’s Sustainability Statement annually. The Group monitors the development of the EU Taxonomy as well as the market expectations and customer needs in this area. In the coming years, Sampo Group aims to increase the share of Taxonomy-aligned underwriting activities in its insurance portfolio if considered material.