Good circular solutions are increasingly important for achieving the world’s climate goals, and are a focus area for both DNB and our insurance provider Fremtind.
What is circular insurance for us?
For us, circular insurance is about a comprehensive way of thinking about insurance, through the prevention of damage, how we repair damage with used parts and how the damaged parts can be turned into something new. Together with Fremtind, we want to challenge traditional value chains within the insurance industry to think more circularly.
Circular insurance reflects our shared ambition to make a difference. In 2022 alone, Fremtind has repaired over 35 000 small and large electronic items. The result of this is a cut in emissions of over 3300 tonnes of C02 and this is just the start.
Preventing water damage
Damage prevention is the first step in creating a more circular world. Our most important contribution is to prevent damage to what our customers already own. So it can last longer and be reused.
With climate change, we are experiencing more damage than before. Cities have few green areas and combined with increased rainfall, this makes us more vulnerable to water damage. When nature and the drainage systems cannot remove the volume of water quickly enough, the water will find other places to get into, such as the basement of your condominium, your shop storeroom or your office.
With more and more rainfall and an enormous increase in water damage to homes and buildings, maintenance and prevention are more important than ever. Together with the technology company 7Analytics, Fremtind will develop a data model that will tell us where stormwater will flow.
The stormwater model will:
- allow us to more precisely assess the risk of water damage to houses and buildings
- make it more possible to prevent water damage
The 7Analytics model is perhaps the most important tool for damage prevention that has ever been created for the insurance industry, municipalities and developers. Fremtind has already put the model into use, among other things, to assess the risk of water damage in housing cooperatives – and proposed climate adaptation measures, which reduce precisely this risk.
Eight immediate measures for business
To help our corporate customers with how they can better prepare themselves and also prevent damage, we recommend checking the eight-point list for immediate measures that have been prepared
- Identify physical climate risk for the company
- Learn from others
- Increase expertise in your company
- Define what is an acceptable level of damage
- Use work with climate adaptation as a business opportunity
- Start reporting now; don’t wait until obligations are imposed
- Share data and knowledge
- Collaborate with, and make requests to, the authorities
We should use more used car parts for repairs
Today, it goes without saying that your car will be repaired with brand new car parts. In Sweden, the proportion of used parts in vehicle repairs is a total of 14%, but in Norway the proportion is below 2%. If the insurance industry as a whole uses used automobiles in 10% of all claims, we can save an annual emissions of 70 000 flights from Oslo to Bergen or 6000 tonnes CO2.