INSURANCE SUPPORT SUSTAINABLE DEVELOPMENT OF ECONOMY

Abstract

The author proves that insurance industry’s core business is to understand, manage and carry risk. We depend on the trust people place in our industry to fulfil its obligations. Through risk prevention and risk reduction and by sharing risks over many shoulders, the insurance industry helps protect society, fosters innovation and underpins economic development. These are key contributions to a well-functioning and sustainable society that meets the needs of the present without compromising the ability of future generations to meet their own needs. The article emphasizes that insurance industry has at its disposal a huge set of tools for promoting the stability of the economy, both by quickly settling losses caused by the occurrence of an insurance event, and by providing recommendations on the implementation of measures to minimize their negative consequences. Our world is facing increasing environmental, social and governance (ESG) challenges. This changing risk landscape is leading to diverse, interconnected and complex risks, and presents new opportunities. Globally, the insurance industry has been proven to be focused on creating an organizational infrastructure that addresses a multitude of issues related to environmental "E", social "S" and governance "G" issues gathered under the umbrella of "ESG". Much of the focus in recent years has been on “E” (environmental) risks, particularly climate-related risks. The Principles of Sustainable Insurance (PSI) are considered, the observance of which corresponds to the idea of sustainable insurance as such a strategic approach, according to which all actions in the insurance value chain, including interaction with stakeholders, are carried out by identifying, assessing, managing and monitoring risks and opportunities related to relate to environmental, social and management problems. The author's position that we will use our intellectual, operational and capital capacities to implement the PSI across our spheres of influence, subject to applicable laws, rules and regulations and duties owed to shareholders and policyholders. The author proves that sustainable insurance is aimed at reducing risk, developing innovative solutions, improving business efficiency and promoting environmental, social and economic sustainability, which can be facilitated by new transformative technological trends, among which the spread of artificial intelligence is decisive.