The UNEP FI Principles for Sustainable Insurance Initiative (PSI) was launched at the 2012 UN Conference on Sustainable Development. This initiative serves as a global framework for the insurance industry to address environmental, social and governance risks and opportunities.
This report, part one of a research series by PSI, aims to assess the effectiveness of risk reduction measures and determine what factors drive success and present obstacles. There is a wealth of data and information available on risk reduction measures and their effectiveness. This report considered over 300 sources including academic papers, government and scientific reports, case studies and media articles. However, the research found the information to be often inconsistent and difficult to compare, presenting a challenge to drawing meaningful insights on the effectiveness of each risk reduction measure. For data to be useful on a global scale, it must be consistent, standardised and globally accepted.
The report aggregates and synthesises a pool of existing information on risk reduction. It applies consistent criteria, allowing comparison of the findings of a wide range of research, and making the information accessible and usable. This is particularly important for audiences which need sound evidence to drive risk reduction investment, such as businesses and governments. This report is neither an academic nor a scientific analysis of risk reduction measures. The objective is to suggest a practical approach to reducing disaster risk and highlight the areas of opportunity. With its collective experience in disaster risk management, the PSI Initiative, and the insurance industry generally, is well placed to engage collaboratively with other stakeholders to promote deeper understanding of risk and drive better outcomes.