Environmental and social trends have a major impact on the world in which a.s.r. operates. a.s.r. outlines three key environmental and social trends that impact a.s.r. and its stakeholders.
Ever increasing importance of climate change, resource scarcity and loss of biodiversity.
In the Netherlands, a declining population growth rate and an aging population put pressure on the labour market and have fostered pension and self-employment law reforms.
Societal inequality is growing, with lower prosperity in certain demographic groups, which is also reflected in healthcare disparities.
Impact on a.s.r. and its stakeholders
Climate change and biodiversity loss are increasingly affecting insurable risks and investment strategies. These risks are divided into physical risks, such as extreme weather events and deforestation, and transition risks, which involve regulatory changes and technological developments. Subsequently, this can lead to higher claims and increased insurance costs, and as a result policyholders might face higher premiums. Insurers need to refine their risk models, develop new products, and align investment portfolios with sustainability goals.
The labour market remains tight due to an aging workforce and a growing demand for new skills. The rise in self-employment and freelancing affects labour market dynamics, employment ratio and the demand for pension and disability products. For self-employed individuals, the new Employment Relationships Deregulation Act (Wet Deregulering Beoordeling Arbeidsrelaties - DBA) can bring uncertainties on security and impact the way they look at pension and disability products.
a.s.r.'s response
a.s.r. strives to limit its negative climate impact as much as possible, and to contribute positively to climate mitigation and adaptation. a.s.r. integrates considerations of climate change, resource scarcity, and biodiversity loss into its investments, products and services. To mitigate transition risks, a.s.r. collaborates with research institutes, universities, reinsurers, other insurers, and experts to gain knowledge about new technologies. This is for instance used in risk management, client acceptance, and pricing. It also ensures value creation for a.s.r.’s customers as part of the strategic goals. See section 2.1 for more information on a.s.r.'s strategy and section 7.8.1.3 for more information on climate-related risks.
Furthermore, a.s.r. evaluates its societal impact through investments, products, and services. a.s.r.’s Product Approval and Review Process (PARP) also assesses whether the product offering meets customer needs. See section 3.1.1 for more information on PARP. The WTP provide opportunities to deliver integrated solutions to the pension market, such as buyouts and tailored asset management solutions. For more information see section 4.3.2.
To combat societal inequality, a.s.r. aims to minimise customer cancellations due to payment arrears and related issues. The company works to prevent situations where customers encounter unaffordable cost-increasing measures and strives to avoid defaults. More on this in section 3.1.1.