New Delhi [India], April 28: The concept of green marketing, later termed ecological marketing, was first discussed in a 1975 workshop by the American Marketing Association (AMA) held in Austin, Texas. Green marketing emphasises the creation and promotion of products or services that showcase their environmental advantages. It aligns business practices with global sustainability goals, appealing to consumers who prioritise eco-friendliness.
Green marketing in the insurance sector is revolutionising the industry by aligning financial services with environmental sustainability, creating a symbiotic relationship between business growth and planetary health. In the era of 21st century, where climate change and environmental degradation are pressing global concerns, insurance companies leverage green marketing to promote eco-friendly products and services while embedding sustainable practices into their operations. By offering policies that reward environmentally responsible behaviours, such as discounts for hybrid vehicle owners, lower premiums for energy-efficient homes, and tailored coverage for sustainable businesses, insurers are incentivising greener choices and making sustainable living more accessible. These initiatives not only encourage eco-conscious decisions but also position insurance companies as leaders in addressing climate challenges.
Insurers are setting moral standards by adopting sustainability measures like transitioning to paperless operations, which significantly reduce paper consumption and save trees. By investing in renewable energy, offsetting carbon emissions, and maintaining records of their carbon footprint, these companies are minimising their environmental impact while demonstrating accountability. For instance, tracking carbon emissions from employees and employers allows insurers to assess climate-related risks, develop mitigation strategies, and offer incentives for energy-efficient buildings. This data-driven approach also reinforces the enterprise’s commitment to sustainability.
Beyond operational changes, green marketing in insurance plays a vital role in mitigating environmental risks exacerbated by climate change. Insurers are offering policies that cover natural disasters like floods and wildfires while streamlining claims processes through digital solutions to reduce paper waste. By educating policyholders about sustainability and rewarding green practices, insurance companies are fostering a culture of environmental responsibility. This approach not only strengthens brand reputation and customer commitment but also establishes insurers as pioneers in corporate social responsibility. Insurance sectors should also reduce the underwriting process, leveraging technology, automating tasks, integrating data, and utilising predictive analytics to improve efficiency, accuracy, and customer experience. Insurance companies should also start implementing policies for employees and employers to maintain their carbon footprint records weekly, quarterly and yearly. This can act as a tool for better sustainability and can create better environmental awareness.
One of the most tangible impacts of green marketing in insurance is the conservation of forests. Paperless operations, e-signatures, and digital documentation drastically cut down on paper usage, preserving trees and combating deforestation. Additionally, some insurers invest in reforestation projects as part of their carbon offset programs, directly contributing to forest restoration. By reducing their carbon footprint and promoting eco-friendly practices, insurance companies are ensuring a legacy of resilience for future generations.
How do we calculate our carbon emissions in the insurance sector of a sales employee or even an employer? There are many factors that one has to keep in mind. Some of these are how they commute daily, how much paper is being wasted every day, underwriting process, number of times one employee or employer is doing the same task, measuring the supply chain activities that are taking place every month, quarterly, yearly and last but not the least, whether the company is maintaining a record of every employee or employer who is not calculating their carbon footprint, so that they pay a certain amount to the company. A simple formula to calculate carbon emissions is: Emissions = Activity Data x Emission Factor. Let us consider Activity Data (Distance) as 15 km (one way), and the Emission Factor as (Metro): 15g CO₂ per km. His carbon emissions one way would be around 225gCO₂ and on the round trip, it will be 450g CO₂. (Emissions=15km*15gCO₂/km=225gCO₂ (One-way ), and Round trip 450g (Multiply 250*2).
In essence, green marketing transforms the insurance sector from a traditional financial service provider into a proactive force for environmental conservation. By integrating sustainability into their core business model, insurers protect individuals and businesses financially and safeguard the planet. This dual role underscores the industry’s potential to drive meaningful change, proving that even conventional sectors can lead the way in creating a sustainable future. Through green marketing, insurance becomes a tool for both financial security and environmental leadership, leaving a lasting positive impact on the world.
We, as insurers, should promote products and services that meet customer needs and wants and protect the environment—Lakshya Mehta.
Vertical Admin at Bajaj Allianz General Insurance.
