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Saturday, December 19, 2020

CAN INSURANCE BET TO PROTECT THE OCEANS

 Today, which is World Oceans Day, we are looking at the challenges of sustainability, largely represented by the acronym ODS, which designates the Sustainable Development Goals (SDGs) of the so-called United Nations 2030 agenda. Among these SDGs, in effect, is the sustainable treatment of the oceans and underwater life. An objective in which we must all be involved, and in which insurance also participates, not just with its grain of sand, but with its drop of water.


In the last half-century, and within the framework of its fight against climatic catastrophes, the Spanish insurance institution has transferred more than 8,500 million euros of payments, destined to minimize or even roll back the consequences of these catastrophes, in order to facilitate the strategies against the consequences of global warming. He thinks, for example, that the insurance institution is also responsible for restoring to economic agents the losses caused by the drought; In 2019, which has been especially virulent in the countryside for many reasons, including the drought, there have been payments of more than 600 million euros.

When the countryside, livestock, and fishing have an effective financial support system that allows them to face their risks in a rational and balanced way, it is the natural environment that stands out. Well-insured companies tend to pollute less.

The insurance allows livestock and fishing to have financial support to face their risks in a balanced way

The restitution of losses for the victims of the drought is an interesting indirect measure that serves to avoid that the reaction to these losses is uncontrolled overexploitation.

Spanish insurance belongs to FinResp, the center for responsible and sustainable finance in Spain; and that membership is neither the result of chance nor will it be fruitless. If the financial sector knows how to do something, it is to manage in the long term, which is precisely what you have to know how to do when you are talking about fulfilling an agenda whose validity expires in ten years. Insurance also knows a lot about sustainability, since it has been managing its business for over a hundred years, and that permanence is only possible if the management adequately combines efficiency and ambition; something that is more important today than ever in environmental management.

In the case of the oceans, the insurance institution has been supporting the fishing sector for many decades, helping it in its evolution towards sustainable exploitation models that are, at the same time, profitable and capable of responding to consumer demands. Insurance, once again, provide certainty and stability to an activity subject in theory to many volatilizes, thus avoiding, once again, excessive exploitation of resources.

Oceans Day should serve to remind us that, even though we are on the right track, we still have a lot to do.

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