It's time to be environmentally conscious in insurance!

Climate change and natural disasters due to climate change have started to enable many sectors to invest in the future of the world. For a healthier and greener world, sustainability studies in the insurance sector are given importance. Asst. Prof. Dr. Hakan Özcan stated that the risk maps prepared by the insurers will provide convenience to both policyholders and the public.

With the increasing global risks, many sectors have started to gain awareness about the environment and sustainability. The insurance industry, which is one of them, enables the increase of sustainable living spaces with risk analyzes and early warning systems. Insurance companies prepare risk reports for new policies and make recommendations in line with these reports. Those insured who comply with these criteria are rewarded with a premium reduction. The same is valid for climate change and natural disaster risks.

DIGITAL ERA REDUCED PAPER USE

Insurance companies have a great responsibility in informing and warning the insured against high damages that may occur. This process is also significant in terms of acquiring new insured to the system. Asst. Prof. Dr. Hakan Özcan from Istanbul Gelisim University, Faculty of Applied Sciences, Department of Banking and Insurance, stated the following: “The risk maps prepared by the insurers provide convenience to both policyholders and the public. The digital revolution has started a transformation in the insurance sector, as it has in all sectors. Above all, it reduced the use of paper.”

INSURANCE POLICIES FOR ELECTRIC VEHICLES

Significant savings are achieved in paper usage by presenting the prepared policies to the insured through e-mail. The use of motor insurance policies for electric vehicles has also started. Insurance companies issue these policies with a risk premium rate parallel to the vehicle value. Asst. Prof. Dr. Hakan Özcan also added, “The policy coverage structures of electric vehicles are wider than other fuel vehicles. In the near future, there will be developments in sustainability with the cooperation of the banking and insurance sectors. Environmentally conscious products will be prepared with risk analyzes, particularly in policies such as motor insurance, housing-workplace, environmental pollution, and guidance can be made at the preferences of the insured. For instance, the insured will be rewarded at the electric vehicle bank loan rate and motor insurance policy pricing.”