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
Nationwide Building Society
Green/Ethical Products
- Ethical Trust (via Legal & General)
- Basic Bank Account
Ethical Lending or Insurance
Nationwide does not have an ethical lending policy. However, as a building society the majority of its lending is to individuals in the form of mortgages. Its commercial lending is concentrated in the following three sectors:
- UK registered social landlords (Housing Associations)
- Commercial and residential property investors
- Private Finance Initiatives (PFI) funding schools, hospitals and social housing projects
Responsible Lending
1. Credit Lending
Nationwide Building Society offers an LTV (loan-to-value) rate up to 85% for new customers. This compares favourably with the FSA’s Turner Review suggestion of a maximum LTV of 90%, i.e. the borrower should have at least a 10% deposit.
However, the building society is also offering 125% mortgage to existing customers in negative equity who want to move house. Negative equity means that the value of the customer’s home is less than the amount they owe on their mortgage. Figures for its LTI (loan-to-income) rates were not found.
Nationwide says that it makes an assessment of a customer’s ability to make regular payments using ‘appropriate credit assessment techniques’, before providing credit. It further states that it may share credit data with other lenders: ‘both to improve the quality of our decisions and to reduce the risk of you becoming over-committed’.
Nationwide says that credit limit increases are assessed on a customer’s personal circumstances and that the customer can request a change to their limit at any time.
2. Debt Warning
Nationwide issues the generic warning to its mortgage customers: ‘Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.’ No warnings were found in relation to the consequences of falling behind on payments on unsecured credit.
The building society provides a link to the FSA’s Debt Test as part of its ‘Payment Difficulties’ section. This test is designed to help customers find out whether you have, or are likely to have, problems with borrowing. It also has tips on what to do if customers find themselves in difficulties.
3. Debt Management and Advice
Nationwide outlines the steps involved in its repossession process. It also presents possible temporary solutions for customers defaulting on loan repayments, these are:
- An arrangement - an agreement to make payments over and above the contractual minimum, to repay arrears
- A concession - an agreement for the customer to make payments below the contractual minimum, which may be agreed to assist cases of financial difficulties
Nationwide may grant a mortgage payment holiday of up to three months in the case of an emergency, such as a bereavement or hospitalisation. Mortgage payment breaks between three and 12 months may also be offered. To avail of these the customer must have held a Nationwide mortgage for more than one year and have a mortgage that is less than 80% of the value of the home at the end of the payment holiday. Such holidays are not permitted for personal loans.
No evidence was found that the bank offers re-housing advice or liaises with organisations such as Shelter and the Citizens Advice Bureau to work out re-housing arrangements with mortgage customers facing repossession.
Financial Exclusion
Nationwide offers a basic account with no credit facilities to low income/financially excluded customers.
The building society does not engage in partnerships with credit unions or other mutual organisations.
In terms of access provisions for financially excluded customers, Nationwide is involved with a coalition of Bristol-based anti-poverty groups to provide free-to-use cash machines in low-income areas across Bristol and Weston-super-Mare.
At a branch level, Nationwide offers facilities to assist those with impaired hearing or sight, literature in the most common foreign languages and in Braille, large print and audio. ‘Helping Hand’ units are also available at branches and these contain Braille bank note sizers, magnifiers to assist customers who may have difficulty reading small print, clipboards and a specially-designed lap-pad for customers in wheelchairs.
The building society also makes some access provisions for customers in small towns and villages by offering services through local agencies.
As a building society Nationwide has limited involvement in microfinance though it states that is offers products to those who are self-employed through its specialist lending arms.
Nationwide states that it does not offer preferential lending within deprived communities, it does, however, offer Private Finance Initiatives (PFI) funding new schools, hospitals and social housing projects.
Environment
The building society’s environment policy addresses the key issues of energy efficiency and waste management and a management system is in place to monitor the policy’s implementation. It also shows a commitment to continued improvement of its environmental performance.
Carbon Neutral
No set target, but Nationwide states that it has reduced the carbon footprint of its business operations by 85% since 2005.
Equal Opportunities
The building society’s equal opportunities policy addresses the key issues: race, gender, disability and sexuality.
Women on the Board
The building society reported 20% in 2008.
Voluntary Standards & Initiatives
Charitable Giving
The building society has pledged to donate 1% of its pre-tax profits.
Nationwide Building Society
- Current Accounts
- Savings
- Investments
- Credit Cards
- Loans
- Mortgages
- Insurance (Home, Motor, Travel, Life, Critical Illness, Income Protection)
Nationwide Building Society
Nationwide Building Society
Member Service
Kings Park Road
Moulton Park
Northampton
NN3 6NW
