Changing Environments - Changing Finance?Sustainable Finance in Turkey

Istanbul 22.1.2009

Constantine TsolakidisAssistant Manager, Environmental Insurance & Renewable EnergyInteramerican Group Environment Advisor

Sustainable Insurance Products:Insuring Environmental Impairment Liability

I N T E R A M E R I C A N M E M B E R O F T H E E U R E K O G R O U P

Contents

Sustainability & the Role of Insurers

Environmental liability: a “chronic infection”

New challenges, new products

The future

I N T E R A M E R I C A N M E M B E R O F T H E E U R E K O G R O U P

Sustainability & the Role of Insurers

The global financial crisis &the global environmental crisis:reflections on the insurance industry

New findings: environment is less of an externality in our days!

New pressures from society, government,clients, competition

Drastic impacts on all lines of business:health -

pensions -

non-life

I N T E R A M E R I C A N M E M B E R O F T H E E U R E K O G R O U P

Sustainability & the Role of Insurers

Drastic impacts on core business:insurability –

underwriting –

claims handling

sales –

reinsurance

Need to shift from defensive to proactive!

Need to focus on our core strengths!

Need to contribute widely our core strengths!

I N T E R A M E R I C A N M E M B E R O F T H E E U R E K O G R O U P

Sustainability & the Role of Insurers

I N T E R A M E R I C A N M E M B E R O F T H E E U R E K O G R O U P

Sustainability & the Role of Insurers

New ongoing projects:IWG global survey questionnaire

MNR Project (Microinsurance,

Natural Catastrophe,

Risk Financing)

PRINCIPLES

FOR

SUSTAINABLE

INSURANCE (PSI)

I N T E R A M E R I C A N M E M B E R O F T H E E U R E K O G R O U P

Environmental liability: a “chronic infection”

New pan-European legislative framework:fines, remedial action, penal punishment…

Environmental liability unfolds a complexarray of interrelated risk exposures, e.g.:-

environmental impairment

-

first & third party liabilities- operational risks-

legal risks

-

financial risks-

technological risks

- social risks-

business & reputational risks

I N T E R A M E R I C A N M E M B E R O F T H E E U R E K O G R O U P

Environmental liability: a “chronic infection”

Need to involve all stakeholders in constructivedialogue:

CLIENTSCLIENTSAdherence to permitting frameworkAdherence to permitting frameworkRisk perceptionRisk perception

BANK &BANK &INSURANCE INSTITUTIONSINSURANCE INSTITUTIONSNew tools and productsNew tools and productsInnovative types of fundingInnovative types of fundingCoCo--management of riskmanagement of risk

SOCIETYSOCIETYAwarenessAwarenessActive involvementActive involvementSharing responsibility in risk Sharing responsibility in risk managementmanagement

STATE ADMINISTRATIONSTATE ADMINISTRATIONSubstantial enforcement of the LawSubstantial enforcement of the LawMonitoring & information sharingMonitoring & information sharingDiversity of support mechanismsDiversity of support mechanisms

I N T E R A M E R I C A N M E M B E R O F T H E E U R E K O G R O U P

Environmental liability: a “chronic infection”

I N T E R A M E R I C A N M E M B E R O F T H E E U R E K O G R O U P

New challenges, new products

GREEN LINE Ευθύνη

για

το

περιβάλλον

ΑΣΦΑΛΙΣΗ

ΑΣΤΙΚΗΣ

ΠΕΡΙΒΑΛΛΟΝΤΙΚΗΣ

ΕΥΘΥΝΗΣ

I N T E R A M E R I C A N M E M B E R O F T H E E U R E K O G R O U P

Covers:

sudden & accidental environmentalimpairment liability based on risk exposure

emergency measures

remedial action plans & measurements asdictated by competent authority

third party liability

legal support

New challenges, new products

I N T E R A M E R I C A N M E M B E R O F T H E E U R E K O G R O U P

The future

Peo

ple

Pla

net

Pro

fit

tsolakidisc@interamerican.gr

Çok

tesekkür

ederim!