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
MBNA Europe Bank Ltd
Green/Ethical Products
None – charity affinity cards are not considered green or ethical on their own.
Ethical Lending or Insurance
As a credit card provider MBNA does not ‘lend’ in the usual sense and therefore does not have an ethical lending policy. However, whether it provides credit in a responsible way and offers debt advice to its customers and supports financial education initiatives, is of key importance.
MBNA’s parent company, Bank of America, applies environmental criteria to its lending policy. It also has guidelines on lending within developing countries (environmental impact, cultural and social structures, and human rights) and applies the Equator Principles to project finance.
Responsible Lending
1. Credit Lending
MBNA offers unsecured credit only, though it directs potential mortgage customers to the provider First Union.
In terms of running credit checks, MBNA appears to rely solely on income-related information provided by the customer rather than using credit reference agencies.
No public data is available as to whether MBNA has a policy to avoid or prevent offering unrequested increases in credit limits to customers.
2. Debt Warning
MBNA offers the following generic warnings on its site:
- ‘Consolidating debts into one loan may cost more in the long term.’
- ‘Think carefully before securing other debts against your home.’
- ‘Your home may be repossessed if you do not keep up repayments on your mortgage.’
The institution does not use the FSA Debt Test. This test 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
MBNA says that ‘various repayment options’ can be discussed with their debt advisors. It also refers customers to external agencies including Consumer Credit Counselling Service (CCCS). No information regarding payment holidays for unsecured credit customers was found.
Financial Exclusion
MBNA Europe Bank Ltd does not offer any products to the financially excluded.
In terms of working with credit unions or other mutual organisations, it states that it has ‘made donations to Chester Credit Union over a number of years’.
The bank makes a number of access provisions, including statement in Braille, large print and audio. It also offers Typetalk facility to those with hearing problems.
Environment
Information was not found or provided regarding the company’s policy on the environment, especially energy efficiency and waste management, as it relates to its own operations.
However, MBNA Europe Bank Ltd adheres to Bank of America’s environmental commitments.
In 2007, Bank of America announced a $20 billion, 10-year initiative to address climate change by championing sustainable business practices in four key areas: lending, investments, products and services, and operations.
Carbon Neutral
No evidence of a pledge on total carbon neutrality was found, though the parent company has a target to reduce emissions from its business operations by 9% in 2009.
Equal Opportunities
The bank’s equal opportunities policy addresses our key issues of gender, race, disability and sexuality.
Women on the Board
The parent company, Bank of America, report that 25% of their board members are women (2008).
Voluntary Standards & Initiatives
Not by itself, but the parent company, Bank of America, is a signatory/member of a number of charters and initiatives including:
MBNA Europe Bank Ltd
- Credit Cards
- Insurance (‘Lifestyle Protect’, Identity and Card Protection)
- Mortgages (through partner First Union)
MBNA Europe Bank Ltd
MBNA Europe Bank Limited
PO Box 1004
Chester Business Park
Wrexham Road
Chester
CH4 9WW
