Sustainability Roadmap For The Brazilian Insurance Sector

SUSTAINABILITY ROADMAP FOR THE BRAZILIAN INSURANCE SECTOR

CNseg – Brazilian Insurance Confederation

DISEC – Sustainability and Consumer Relations Office

We plan to construct a sustainability roadmap for the Brazilian insurance sector in line with Brazilian Sustainability Insurance Regulation (Circular 666 of 2022), global best practices promoted by Sustainable Development Goals (SDGs) adopted by the United Nations and Principles for Sustainable Insurance of UNEP FI, fostering synergies between the sustainability, nature protection and consumer relations agendas in the development of products adapted to consumers’ needs.

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Sustainable Insurance Summit

PRESENTATION

Promote a just transition to a low-carbon AND SUSTAINABLE economy

Promote a society more resilient to climate change Promote inclusion and fight inequalities

Objective 1 Promote a just transition to a lowcarbon and sustainable economy 1.2 1.1

Sustainable Products/Insurance –Sustainable Insurance Taxonomy

Carbon Credit Insurance

1. Promote a just transition to a low carbon and sustainable economy

1.1 SUSTAINABLE PRODUCTS/INSURANCE – SUSTAINABLE INSURANCE TAXONOMY

Develop a framework that makes it possible to identify characteristics and classify insurance products, services and assistance offered in an objective and clear manner by insurance companies, contributing to Brazil’s sustainable development and a just transition.

◆ Objective

Propose a framework and regulations that are aligned with Brazil’s social and environmental taxonomy and the expectations of the Brazilian Private Insurance Regulatory Agency (SUSEP), providing a benchmark for the market, helping it adapt and creating sustainable products and services adapted to consumers’ needs.

◆ Actions/Stages

➢ Strengthen relationship with the regulator to address the topic

➢ Partnership with UNEP-FI for development of sustainability best practices guidelines and framework

➢ Literacy training and awareness raising for CNseg members and representatives of members on the subject, with our counterparts in other countries that have already made progress in the area, through agreements with Fasecolda and others associations/entities

➢ Engagement with stakeholders that can also help with this agenda

1. Promote a just transition to a low carbon and sustainable economy

1.2 CARBON CREDIT INSURANCE

Encourage and promote the creation and adaptation of insurance products and services to protect carbon credits in Brazil. Also fostering the creation of products that promotes protection of forests, nature and biodiversity.

Make insurance a key and governance element for the development of voluntary and regulated carbon markets in the country.

◆ Objective

Reinforce insurance sector’s role as one of the key drivers for the protection of our forests, nature and biodiversity.

◆ Actions/Stages

➢ Discussions with government and stakeholders to raise awareness of the importance of transfer risks instruments such as insurance in carbon market

➢ Engagement of insurers and reinsurers

This is a project shall be presented at COP30.

Objective 2 Promote a society more resilient to climate change 2.2 2.1

ICLEI partnership: “Insurance Mechanism for Urban Infrastructure”

Climate Data Hub

2. Promote a society more resilient to climate change

2.1 ICLEI PARTNERSHIP: “INSURANCE MECHANISM FOR URBAN INFRASTRUCTURE”

Construct insurance programs to support people affected by climate disasters and (re)build resilient urban infrastructure.

◆ Objective

Expand insurance’s role in urban planning and contribute to the climate resilience of pilot project cities.

◆ Actions/Stages

➢ Gain understanding regarding needs assessments / vulnerability studies

➢ Participate in ICLEI's discussions with governments and hold regional meetings to raise awareness

➢ Engagement of insurer and reinsurers

2. Promote a society more resilient to climate change

2.2 CLIMATE DATA HUB

Build a repository containing information related to climate events and data and impacts on the operations of CNseg members and federations, that (i) promotes cross-reference with statistical data from SUSEP and possibly other stakeholders, and (ii) produces reports setting out quantitative and qualitative data on climate events and risks in Brazil, in line with Circular 666 of 2022, which requires mapping and surveying the impacts of climate risks, and with TCFD (Task Force on Climate-Related Financial Disclosures) framework. This project will promote the risk awareness related to climate change and climate extreme events.

◆ Objective

Make CNseg a national leader in terms of the provision of data, statistics and other information related to climate in Brazil.

This is a project shall be presented at COP29 and COP30.

◆ Actions/Stages

➢ Alignment with Brazilian Insurers regarding the project

➢ Mapping with Brazilian Insurer and other stakeholders on data and information (sources) that could help the sector with the subject

➢ Quarterly mapping of information relevant to sustainability risk management as established by Brazilian Insurance sustainable regulation.

➢ Promote academic studies to understand the impacts of climate risks on the insurance sector

Disaster Social Insurance Objective 3 Promote inclusion and fight inequalities

3.1

3. Promote inclusion and fight inequalities

3.1 DISASTER SOCIAL INSURANCE

Disaster social insurance is a insurance program proposed by CNseg to governments (federal, state and municipal), that provides protection and financial support to Brazilians who experience natural disasters caused by heavy rain and flooding, strengthening the risk mitigation agenda in light of the climate emergency, while fostering an adaptation agenda and helping cities and municipalities to build their resilience against the climate change.

Promoting disaster social insurance with aimed at boosting social justice and tackling inequalities caused by climate change.

◆ Objective

Enable consumers to access to affordable and inclusive insurance product that promotes social and financial inclusion, and also financial resilience and protection due extreme climate events

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Actions/Stages

➢ Promoting the Program to government and congress

➢ Engagement of other non-governmental stakeholders

➢ Conversations with Insurance Associations of FIDES and other countries to understand similar programs in the region