The increasing scale of environmental and social issues and the macro-trends that have emerged in recent years have led to an urgent need to ensure adequate coverage of environmental, social and governance risks as well, drawing the attention of the insurance industry and the essential role it plays in this area. In fact, through correct and effective implementation of risk management processes also by sector operators, the insurance industry can contribute to the mitigation of risks for the community and the sustainable development of society.
In light of these considerations, the path of ESG integration in the financial business was also initiated with reference to insurance activities and Poste Vita, on the basis of this awareness, decided to define a robust approach formalised within its “Responsible Insurance Policy”. This Policy describes the principles, objectives and processes underlying the Company's approach to managing risks and opportunities related to ESG factors within traditional insurance processes.
The early adoption of an ESG integration approach in the financial business has enabled Poste Vita to anticipate developments in the relevant market scenarios by introducing innovative insurance products with social and environmental impacts
Since 2019, Poste Vita S.p.A. as the Parent Company of the Poste Vita Group has been a signatory to the Principles for Sustainable Insurance (PSI) promoted by the United Nations, affirming its formal commitment to the inclusion, in its decision-making and business processes, of sustainability criteria relevant to the insurance sector, particularly relating to environmental, social and governance dimensions. This commitment is also highlighted through collaboration paths with customers and partners aimed at raising awareness in this area and the promotion of synergies with bodies and institutions with the aim of favouring widespread and cohesive action on ESG issues.
To ensure the management of current and prospective ESG risks to which the Group is or may be exposed, Poste Vita Group Companies integrate into their processes a systematic assessment of environmental, social and governance context factors that may impact the economic and social environment and, therefore, the company's business in the long term. To this end, each company’s risk management function - specifically, in the context of supporting on the risk and solvency processes’ evaluation – is responsible for identifying, analyzing and assessing the risks coming, among others, from the different dimensions of the external environment, including those linked to sustainability risks (ESG).
The outcome of the aforementioned analyses, particularly on the most relevant ESG risks that have emerged from the activities of the Risk Management function, is communicated to senior management and the relevant functions, including among which the Insurance Products Committee1 that can make proposal to the CEO about the potential need to take escalation actions, with the aim of ensuring adequate mitigation of potential threats and identifying new business opportunities for the development of sustainable insurance products.
One area that has engaged Poste Vita Group companies, and which will continue to be developed with a view to ongoing evolution, concerned the integration of further considerations in relation to sustainability risks into the risk management framework and the Actuarial Function. The aim is to ensure alignment with national and EU regulatory requirements and market best practices, with a particular focus on climate change risks2.
The Poste Vita Insurance Group, consistent with its corporate objectives, pays particular attention to environmental and social issues in the development of its range of insurance products with social and environmental benefits. To that extent, among the various products marketed, Poste Vita has committed itself for the development phase of its offering, in order to include more vulnerable social groups that need greater attention, such as younger and older people, introducing, in the area of individual pension plans, Poste Vita offers special complementary forms, accessible also to the younger generations, who find themselves having to fill a substantial pension gap, reducing the difference between the expected basic compulsory pension and what is needed to guarantee a decent standard of living.
In light of these considerations, the path of ESG integration in the financial business was also initiated with reference to insurance activities and Poste Vita, on the basis of this awareness, decided to define a robust approach formalised within its “Responsible Insurance Policy”. This Policy describes the principles, objectives and processes underlying the Company's approach to managing risks and opportunities related to ESG factors within traditional insurance processes.
The early adoption of an ESG integration approach in the financial business has enabled Poste Vita to anticipate developments in the relevant market scenarios by introducing innovative insurance products with social and environmental impacts
Since 2019, Poste Vita S.p.A. as the Parent Company of the Poste Vita Group has been a signatory to the Principles for Sustainable Insurance (PSI) promoted by the United Nations, affirming its formal commitment to the inclusion, in its decision-making and business processes, of sustainability criteria relevant to the insurance sector, particularly relating to environmental, social and governance dimensions. This commitment is also highlighted through collaboration paths with customers and partners aimed at raising awareness in this area and the promotion of synergies with bodies and institutions with the aim of favouring widespread and cohesive action on ESG issues.
To ensure the management of current and prospective ESG risks to which the Group is or may be exposed, Poste Vita Group Companies integrate into their processes a systematic assessment of environmental, social and governance context factors that may impact the economic and social environment and, therefore, the company's business in the long term. To this end, each company’s risk management function - specifically, in the context of supporting on the risk and solvency processes’ evaluation – is responsible for identifying, analyzing and assessing the risks coming, among others, from the different dimensions of the external environment, including those linked to sustainability risks (ESG).
The outcome of the aforementioned analyses, particularly on the most relevant ESG risks that have emerged from the activities of the Risk Management function, is communicated to senior management and the relevant functions, including among which the Insurance Products Committee1 that can make proposal to the CEO about the potential need to take escalation actions, with the aim of ensuring adequate mitigation of potential threats and identifying new business opportunities for the development of sustainable insurance products.
One area that has engaged Poste Vita Group companies, and which will continue to be developed with a view to ongoing evolution, concerned the integration of further considerations in relation to sustainability risks into the risk management framework and the Actuarial Function. The aim is to ensure alignment with national and EU regulatory requirements and market best practices, with a particular focus on climate change risks2.
Insurance products with social and environmental benefit
The Poste Vita Insurance Group, consistent with its corporate objectives, pays particular attention to environmental and social issues in the development of its range of insurance products with social and environmental benefits. To that extent, among the various products marketed, Poste Vita has committed itself for the development phase of its offering, in order to include more vulnerable social groups that need greater attention, such as younger and older people, introducing, in the area of individual pension plans, Poste Vita offers special complementary forms, accessible also to the younger generations, who find themselves having to fill a substantial pension gap, reducing the difference between the expected basic compulsory pension and what is needed to guarantee a decent standard of living. 1) The Insurance Products Committee is a committee, constituted at senior management level, with an advisory role to the Managing Director of the Companies as part of the oversight of the offer management processes, with the aim of directing, from a unified and integrated perspective, the development and monitoring of the products offered, consistent with the strategic guidelines of the Insurance Group - including the monitoring of ESG risks - in accordance with the strategic guidelines of the Poste Vita Group and the guidelines on product governance and control (“Product Oversight Governance”), without prejudice to the offer governance processes and related deliberative processes specific to each Company.
For the year 2023, no high-risk ESG cases were found for which further review was deemed necessary.
2) In this regard, it should be specified that the Poste Italiane Group does not currently underwrite coal and unconventional oil and gas sectors (e.g.,unconventional oil & gas: Tar Sands, Shale Oil & Gas, Arctic Oil & Gas, Liquified Natural Gas (LNG), Ultra-Deep-Water (UDW) Oil & Gas).
