Corporate Respons­ibility


Although insurance companies have always been concerned with potential losses due to natural risks, global warming is underscoring the urgency of the problem.

An end to coal

Insurance companies influence the risks that companies can take. VIG Insurance Group uses this lever to help create a more environmentally friendly economy. The decision to withdraw from the coal sector was already part of its climate change strategy in 2019. No new policies are being issued for coal mining or coal-fired power plant projects. Existing policies in this area are being gradually reduced. In 2021, coal risks in the corporate business were reduced by 74% compared to 2019.

VIG Insurance Group analyses climate risks and develops measures to reduce them.

Special scenario analyses have been performed since 2019.

Special scenario analyses help to estimate how climate change will affect the frequency and size of losses and, therefore, the insurance business in different sectors. The medium and long-term effects of climate change are also examined in the “Own Risk and Solvency Assessment” (ORSA), a periodic analysis of a company’s own risk situation and capital adequacy (solvency). The main focus is on potential extreme weather events, such as flooding, storms and severe weather with hail, but also earthquakes are considered. Current scientific studies are used to analyse the possible effects of global warming of 1.5°C, 2.0°C and 3.0°C above pre-industrial levels. Natural disasters and their effects are modelled with the help of external experts. The risk models used are constantly improved based on new data and findings, such as newly built flood protection measures. VIG Insurance Group is using its increased underwriting knowledge to purchase reinsurance for the risks it assumes.

Recommendations for reducing risk for corporate and large customers

The more frequent extreme weather events are increasingly affecting the support provided to corporate and large customers, that is, the underwriting process. The support process begins with a careful analysis of the risk situation and protective measures that have already been implemented. The experts at the partner company RiskConsult use this to develop individually tailored recommendations for further improving the risk situation and preventing losses. Companies have an incentive to implement the recommendations because it would reduce their premiums or, in some cases, because they would not be insurable unless they did so.

Informing customers about weather events and raising awareness

VIG Group has developed a variety of services to help corporate customers and households manage climate risks more effectively. Early warning systems provide warnings for extreme weather events and information systems allow users to better assess risks. These measures reduce risk by, for example, influencing decisions about whether or not to build a house in certain locations. They also make people aware of the relevant risks and draw attention to longer-term trends.

Insurance for innovative, sustainable technologies

The Group has provided insurance for renewable energies, such as wind, hydroelectric, photovoltaic and biomass power, for many years in Central and Eastern Europe. This also offers new business opportunities by opening up new customer groups. The Group is currently one of the leading providers of insurance for renewable energy generation systems in Central and Eastern Europe.

Green mobility and green buildings

Key environmental figures

Conserving resources in the Company’s own business operations is one of the environmental priorities in the sustainability strategy.

  2021 2020 2019* 2018 2017
Electricity use in kWh 31,406,102 31,226,191 37,714,981 34,853,014 35,399,037
Heating use in kWh 50,236,170 48,633,949 49,172,287 48,381,772 51,207,830
Kilometres of air travel 1,100,121 1,175,961 8,618,909 6,919,037 6,907,486
Corporate carbon footprint in tonnes of CO2 equivalents 28,465 28,652 35,859 32,439 32,931
Scope 1 (direct emissions) in t CO2 equivalents 14,210 13,512 16.213    
Scope 2 (indirect emissions) in t CO2 equivalents 14,136 15,022 18.714    
Scope 3 (business flights) in t CO2 equivalents 119 118 932    

*including five additional companies compared to the previous year

For animated version of the key environmental figures as well as of other key figures of VIG Insurance Group please see the Interactive Key Figures Tool.