AM Best becomes first credit rating agency to sign U.N.’s Principles for Sustainable Insurance

Written by Adam Cadle

17/03/2021

AM Best has become the first credit rating agency to become a signatory of the United Nations Environment Programme’s (UNEP) FI Principles for Sustainable Insurance (PSI).

AM Best said it believes the insurance industry plays an important role in supporting sustainable economic and social development.

"In addition, management of environmental, social and governance (ESG) efforts will strengthen the insurance industry’s contribution to building a resilient, inclusive and sustainable society," it said. "AM Best’s PSI membership is a significant step in this direction."

Endorsed by the U.N. Secretary-General, the Principles have led to the largest collaborative initiative between the U.N. and the insurance industry — the PSI Initiative. Over 140 organisations worldwide have adopted the four Principles for Sustainable Insurance, including insurers representing more than 25% of world insurance premium volume and $14trn in assets under management. The Principles are part of the insurance industry criteria of the Dow Jones Sustainability Indices and FTSE4Good.

“We are delighted that the world’s first credit rating agency is also the first credit rating agency to sign the UN’s Principles for Sustainable Insurance (PSI),” said Butch Bacani, who leads the PSI at the UN Environment Programme. “As the largest credit rating agency specialising in the insurance industry, this is a clear and strong signal from AM Best that sustainability matters in the insurance business, that sustainability counts. In the final analysis, the bottom line is sustainability.”

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