Insurance Overview
Insurance companies supply services to a wide variety of customers, from everyday consumers to large corporations.
But do they have guidelines or policies as to who they will and won't insure? Do green and ethical considerations feature in insurance companies' risk assessments?
Might they, for example, offer coverage to munitions factories or companies with significant operations in countries with oppressive regimes? Or might they insure others with poor labour or environmental records?
Green and ethical insurance products
Green and ethical insurance products
For home, motor, travel, life and health insurance, there is a small but growing number of green and ethical insurance products available. A selection is below:
- Co-operative Insurance
Insurance type: home, motor, life and health
This provider has a comprehensive ethical engagement policy in place that governs all its insurance decisions. The Co-op's 'ecoinsurance' scheme offers cash incentives as well as environmental pledges. It offsets the equivalent of 20 per cent of the CO2 from every vehicle insured and also offers premium discounts for greener cars. - Climate Sure
Insurance type: travel
Climate Sure calculates the CO2 produced by flying overseas and pays for it to be 'offset' by funding sustainable energy projects. - Green Insurance Company
Insurance type: motor
This provider aims to offset your car's carbon emissions and offers discounts on greener cars/lower mileage. - Naturesave
Insurance types: home, travel, personal accident and illness
This company puts 10% of its personal insurance premiums in a fund (Naturesave Trust) to benefit environmental and conservation projects. It also offers a free environmental performance review for commercial clients and aims to use suppliers that support sustainable business practices. - Ansvar Insurance Co Ltd
Insurance types: home, motor, travel
Insurance is sold to individuals and organisations with a not-for-profit remit.
Your next steps
What do you do now? Check out our guide Next Steps - Insurance for suggestions on how to give your insurance policies a green and ethical makeover as well as the questions you should be asking your current or prospective insurance provider.
Insurance Search
Insurance Provider
Egg
Green/Ethical Products
None
Ethical Lending or Insurance
No evidence of an ethical lending policy.
Responsible Lending
1. Credit Lending
Egg offers 95% LTV (loan-to-value) rates for two and three year fixed-rate mortgages (2007). This does not compare favourably with the FSA’s Turner Review which suggests that LTV rates be set at 90%, i.e. that borrowers should have at least a 10% deposit for a mortgage. Egg has not publicly disclosed its LTI (loan-to-income) rate for mortgage products. The Turner Review’s analysis suggests lending to 3.5 times of income for single applicants.
However, Egg indicates that it has stopped offering mortgage products. Though the above rates still apply to existing customers.
In terms of conducting checks into the credit history of customers seeking unsecured credit, Egg indicates that it ‘may’ conduct checks with credit reference agencies but specific details are not supplied publicly.
2. Debt Warning
The bank issues the generic warning to mortgage customers: ‘Your home may be repossessed if you do not keep up repayments on your mortgage.’
For unsecured loans the bank provides some general guidelines for customers to avoid getting into debt. These include checking the balance on accounts before making withdrawals, repaying more the minimum amount, paying on time and stressing the importance of budgeting.
The bank does not use the FSA Debt Test or an equivalent. This facility is designed to help customers find out whether they have, or are likely to have, problems with borrowing. It also has tips on what to do if customers find themselves in difficulty.
3. Debt Management and Advice
No information was found regarding the bank’s policies on payment default and handling payment problems, or the stages involved in the repossession process or before court action, on secured loans (mortgages).
With regard to unsecured loans the bank states that it might offer a number of options, including arranging an affordable payment plan; short-term reduced payments; amending payment dates; temporarily increasing the credit limit on cards; and altering payment schedules.
Payment holidays are offered on the bank’s two and three-year fixed-rate mortgages but the possible duration of these are not stated. With regard to unsecured credit, information was found for Egg’s credit cards which states: ‘We [the bank] may allow you [the customer] occasional payment holidays. If we do this, we will still charge interest as if a payment was due during the payment holiday.’
No public data was found as to whether or not the bank offers re-housing advice to customers whose homes have been repossessed or whether it liaises with organisations such as Shelter and the Citizens Advice Bureau to work out re-housing arrangements.
Financial Exclusion
No evidence of policy or products.
Environment
The company’s environmental policy refers to the key areas of climate change/energy efficiency and waste management. However, there is no evidence of a long term commitment to continued improvement of its environmental performance.
Carbon Neutral
No evidence was found of a pledge on making business operations carbon neutral.
Equal Opportunities
Egg has a non-discrimination policy for employees but does not cover disability and sexual orientation.
Women on the Board
No data found.
Voluntary Standards & Initiatives
No evidence that Egg is a signatory to any charters or initiatives. Its parent company, Citigroup, is a signatory/member of the following:
Egg
- Current Accounts
- Savings
- Investments
- Credit Cards
- Loans
- Mortgages
- Insurance (Home, Motor, Travel, Emergency)
