Sampo Group

Annual Report 2011
Personnel
Corporate Governance

Corporate Responsibility

Sampo Group's companies follow the common values of ethicality, loyalty, transparency and enterprise in their business operations and contacts with all stakeholders. Insurance is a business where responsibility and trust are inherent in daily customer contacts. Social responsibility is high on the agenda both in If P&C, the largest P&C insurer in the Nordic countries, and Mandatum Life, the leading life insurance company in Finland and in the Baltic region.

Corporate responsibility in If P&C

The guiding principle of If’s operations is to contribute to a society in which everyone is able to live safely and securely. P&C insurance companies, together with public authorities such as the police, rescue services and judiciary, form some of society's most important contributors in creating everyday security. In 2011 alone, If dealt with 1.5 million insurance claims, which covered everything from private customers’ motor claims to corporate claims caused by an interruption in production processes of the company or a supplier. This was the case for example in Japan and Thailand during the year. In total, If paid out close to EUR 2.8 billion in claims over the past year.

As the leading P&C insurance company in the Nordic region, If assumes a broader social responsibility than that brought on by business alone. If uses its unique knowledge of risk management to help build a safe environment. The goal is to always act in ways that meet, or preferably exceed, the ethical, legal, and commercial requirements placed upon the company.

As an example, If has taken an active interest in environmental issues over the past few years, and all the company's actions are guided by a strict environmental policy. The fundamental thought behind the policy is that If should always seek out the most environmentally viable solution for the company itself, its customers, suppliers and partners. A series of concrete actions have been taken in 2011:

  • If, which handles more than 300,000 damaged cars every year and places orders for repairs to homes and commercial premises for millions of euros, continues to specify environmental requirements for suppliers in their choice of transport, work materials, working methods etc. The results can be discerned in the statistics: For example, in 2011 If was responsible for almost half of all repairs carried out on damaged plastic car components in Sweden. In addition, If sends more than a thousand cars for dismantling every year. The work releases close to 70,000 spare parts, which are then used for repairs in car repair shops. Apart from saving on raw materials, recycling leads to reduced CO2 emissions.
  • An ambitious in-house environmental program has been ongoing for a number of years in If. During the year 2011, If has e.g. carried out a major project aimed at reducing energy use at the larger If offices.
  • If has become climate neutral during 2011, in compliance with the UN's Clean Development Mechanisms (CDM) program, to which If has affiliated itself. That has been accomplished by If investing in an electricity power station in India to reduce emissions there, as compensation for If's own emissions.
  • If's climate-change work obtained an excellent score when it was assessed in compliance with the so called ClimateWise Principles. ClimateWise is an international climate-change initiative introduced by the insurance industry.
  • If has initiated a collaborative venture with the WWF in Finland, which has included If’s office in Turku becoming a green WWF office.

If has an extensive program for supporting safety initiatives in a broad sense. In Sweden, for example, If supported Rädda Barnen’s (Save the Children) work to combat internet bullying in 2011. If's ‘Säkerhetsnål ‘and ‘Eldsjälspriset’ scholarships are awarded once a year to a young person working to support other young people in vulnerable positions, or an organization or a private individual whose activities contribute to a better society. In Norway, If has a collaborative relationship nationally with Direktoratet for samfunnssikkerhet og beredskap (The Norwegian Directorate for Civil Protection and Emergency Planning) and Norsk Brannvernforening (The Norwegian Fire Protection Association). In Finland If helps keep primary school children safe with high visibility yellow caps which make the children visible to traffic while on their way to school. If also supports SUL’s (The Finnish National Athletics Federation) Athletic Schools initiative for children and teenagers aged from 7 to 14.

Additionally, If puts great effort into helping customers prevent accidents on their own. This is done on a smaller scale by offering safety-increasing products to consumers, and on a larger scale by supporting commercial customers through systematic risk analyses.

Naturally, If also tries to convince politicians and other decision makers to come to sensible and far-sighted decisions. One example of this is Sweden, where If works to get zoning officials take into consideration the risks of raised water levels when taking a stand on waterfront housing wishes. Along with the other three major Nordic insurance companies, If is supporting a research project on climate adaption in the Nordic region that is being managed by the Nordforsk research funding organization, an organ of the Nordic Council of Ministers. If's researchers also analyze the company's comprehensive vehicle damage statistics on a regular basis, with the aim of ensuring that the information can be used to increase safety on the roads. At present, the focus is on improving the safety of unprotected road-users such as cyclists and pedestrians.

The number of reported claims on the web increases, which both improves the customer service, and is good for the environment due to decreased paper consumption.

Corporate responsibility in Mandatum Life

Mandatum Life’s corporate responsibility is based on the cornerstones of its operations: increasing and securing its customers’ economic welfare and its safeguarding against risks.

Mandatum Life provides protection for its corporate customers and their families as well as for the future of the company in the event that the entrepreneur falls ill, becomes disabled or is deceased. Enabling voluntary complementing of pensions is also important for entrepreneurs, because the small size of statutory pension could mean that the entrepreneur’s level of income during retirement would fall even below the subsistence-level. Mandatum Life offers entrepreneurs better possibilities to concentrate on running their business and cope in the event of personal risks. The offered solutions also have favorable effects both on the entrepreneur’s sphere of influence as on the development of entrepreneurship in general.

In close collaboration with its large corporate customers, Mandatum Life is developing strategies and processes regarding well-being at work – and is thus participating in the improvement of responsible personnel practices. Corporate customers look after their personnel, and indirectly their families, by offering, among other things, supplemental coverage against disability or death and by rewarding their personnel in a longsighted and motivating manner.

The most important factors affecting our happiness are family, health, love and good financial security. Falling critically ill, becoming disabled, an accident or death may pose a significant financial risk. Voluntary supplemental coverage is usually necessary, and Mandatum Life’s indemnities help the insured and their loved ones to better cope in difficult situations.

Personnel
Corporate Governance