Everyone is talking about the weather
For years, the subject of "global warming" has caused a cold war between experts in the area, but there is an increasing consensus that climate change is a reality that we all have to deal with. TrygVesta is hard at work finding solutions to the new challenges that climate change involves.
In 1728, the city of Copenhagen burned down. This prompted a number of citizens to establish "the fire fund" to counteract the consequences of the fire. Now, at the beginning of the 21st century, alarm bells are ringing again. This time due to global warming:
"It’s not just a hypothetical question about what will happen in the future. It’s a question of what has already happened: In recent years, we’ve had warmer weather, more rainfall, more wind – and more claims. TrygVesta has already faced considerable additional expenses in both Denmark and Norway," explains Lars Bonde, Chief Executive of Corporate. He glances at his watch and notices that it’s 3 December:
"Exactly eight years ago today, on 3 December 1999, a terrible storm hit Denmark. The storm of the century, as it was called, resulted in 94,000 claims and cost TrygVesta DKK 2.5 billion. And although it was a storm of the century, in January 2005 a new storm whipped up another 53,000 claims and cost DKK 733 million. Weather damage has brought considerable costs both for our customers and for us. And we will do everything we can to ensure our customers are as well prepared as possible for the new weather conditions," explains Lars Bonde.
New weather conditions raise new questions
During the wet summer of 2007, many basements were flooded, and it became clear at TrygVesta that weather damage is a challenge for the entire logistics system. The Group has therefore allocated reinforcements to this area, including extra backup from claims experts and additional suppliers who can help repair the damage. New initiatives, however, lead to higher costs:
"If the number of claims continues to rise, insurance premiums will follow suit, but we’re not there yet. We’ve now reached a point where we must face certain questions: Should we involve ourselves in how houses are built? What houses should we insure? What demands should we make?
Can we develop products that encourage customers to reduce pollution, or can we assess the damage in a particular way that inspires environmental awareness?" says Lars Bonde, before adding: "We must also ask ourselves what we can do to be more environmentally friendly. We want sustainability to be a key word at all levels of our company – from product development through transport."
Focus on climate initiatives – policy, science and the business community
For some years, environmental and climate changes have been a controversial political topic in Denmark and internationally, but the subject is being given increasing priority on political and scientific agendas. After the general election in November 2007, Denmark now has a new Climate Ministry, and in December 2009, Denmark will host the UN Climate Summit.
TrygVesta always strives to make a positive contribution to society. Naturally, this also applies to the environment and climate. TrygVesta is a member of the Council for Sustainable Business Development, along with about 20 other major companies such as Danfoss, Grundfos and Novo Nordisk. The council is currently working on a charter of eco-guidelines that will be finalised and passed in spring 2008.
Concerns and expectations among the general public
Climate change has been the subject of intense media interest in recent years. And many insurance customers already have an opinion on this issue. A survey conducted by TrygVesta in Norway showed that three out of four Norwegians are concerned about how climate change will ultimately affect life on Earth:
"Our job is to provide peace of mind, and when so many people are concerned about the climate it has a major impact on us. We’ve found that concerns in this field have risen significantly in recent years. We’ve also realised that people expect us to solve the problems. The Norwegian survey shows that customers expect a great deal from their insurance company. They expect us to have the skills required to find solutions. That’s why we’re working hard to adapt to the new situation – and find new solutions," says Lars Bonde.
Intensified environmental focus
In 2007, TrygVesta devised a system for its environmental work and established an interdepartmental corporate steering committee to drive the Group’s climate and environmental commitments.
The Supervisory Board approved an environmental and climate policy that came into force on 1 January 2008. This policy defines a number of specific climate goals for the Group in 2008, including a 10% reduction in the Group’s CO2 emissions in 2008-2010. TrygVesta will also screen environmental and climate issues throughout the entire Group in 2008 as the basis for an annual measurement and reporting in the future.
Responsibility and innovation
TrygVesta in a Nordic collaboration on CSR driven innovation
Klausdalsbrovej 601DK-2750 BallerupTelephone: +45 7011 2020Fax: +45 4420 6700E-mail: ir@trygvesta.com