Stockholm company ensures a cleaner future for global insurance industry
The impact makers of Stockholm.
Insuring your possessions is the responsible thing to do, yet we rarely - if ever - consider the environmental impact of our claims. This is all set to change as one Stockholm-based company commences its journey to decarbonize the insurance industry.
Repairs of insured cars and properties contribute to 1% of all global carbon emissions. In the grand scheme of things it might not sound like a lot, but this humble 1% is the equivalent of driving 300 million cars each year.
“When, for example, you break your car door, there isn’t just a financial cost,” explains Markko Waas, CEO and co-founder of Claims Carbon Institute. “There’s also a cost in terms of CO2 emissions. That door is made of steel, aluminum and plastic, which demand a lot of energy to make.”
Founded in 2021, Claims Carbon Institute offers Software as a Service (SaaS) specifically to help the insurance industry reduce its carbon footprint. Using the unique software, insurers can get data and insights that enable them to make correct assessments about their supply chain in order to reduce their carbon footprint.
“What we do is we get financial data from them, and then we use our algorithms to give them the CO2 emission data on both a corporate level or a line of business and in different countries. So you get it on a higher level and more granular data.”
As Markko explains it, it’s then the responsibility of the insurance company to then take action and address “their hotspots”, i.e. the carbon significant aspect of a claim which should be targeted for reduction: “When you start working with the hotspots, that’s when you really make an impact and start to improve the climate.”
Claiming responsibility for claims
Claims Carbon Institute is the first company to look at insurance claims in this way. Markko’s colleague Espen first had the idea after attending the digital Davos meeting in 2021. Espen identified that there was work to be done in regards to how the industry handles claims and the emissions in the supply chain.
"To reach the Paris agreement the insurance companies need to work together with their supply chains,” explains Markko. “This is where you can have a major impact as an insurer. Approximately one third of insurance companies CO2 emissions arise from claims handling.”
Claims Carbon Institute currently operates in the Nordics, with customers in all Nordic countries, but has ambitions to take its business global. Expanding is the only way to create real impact, says Markko.
It’s still early days for the company, but they plan to gather further data to calculate a more precise number for the CO2 savings potential. For now, everything circles back to the 1% of emissions produced by the insurance industry and the potential to reduce this with just a fraction of the world’s insurance companies on board. “If we can get 10-15% of the global market, we could make a huge impact on CO2 emissions.”