Research Problem
The Department of Economic and Social Affairs of the United Nations designed 17 goals known as the Sustainable Development Goals which are aimed towards achieving a better and more sustainable planet. The author of this paper gives an analysis on the topic- “Contribution of Insurance Industry in achieving Sustainable Development Goals. While reading in-depth about these sustainable development goals stumbled upon certain important research problems such as-
1. Why are Sustainable Development Goals important?
2. Whether citizens as well as industries have an obligation in achieving Sustainable Development Goals?
3. How does the Insurance Industry contribute in achieving United Nations Sustainable Development Goals?
Research Design
The author has opted for the Doctrinal Approach Research Design for conducting the research on the topic- “Contribution Of Insurance Industry In Achieving Sustainable Development Goals.” Doctrinal Approach or Doctrinal Methodology is conducted by using legal research resources and databases. These include case laws, statutes and e-databases. For the same, the author has conducted research using the Official Website of the United Nations, Research Articles available on online-databases such as SCC Online, Manupatra, HeinOnline, etc. The author has made the analysis of this paper and tried to answer the research papers using the above method and resources available. Hence the paper is based on secondary data sources.
Argumentation, Analysis, Citations and use of referencing
Insurance acts as a security blanket as it works as a financial protection and helps in reimbursement of losses faced during certain situations. Thereby, Insurance is a contract between parties, where the insured person pays premium monthly or annually for a certain sum of money that can be recovered from the insurer. This industry works by pooling money from various insured clients to a client who actually faces the loss. An insured person can claim money from the insurance company only for which premium has been paid by the person for protection against that particular risk. Insurance therefore helps in reducing a lot of financial liability in uncertain times and when accidental losses are faced.
The Sustainable Development Goals were intended to make the world better. These goals tend to apply to all the nations and its citizens. These were established in 2015 by the United Nations with the mission to achieve a better and more sustainable future for all the people and the world by the year 2030. There are in total 17 goals covering poverty, hunger, health, economic growth, infrastructural development, all forming path to lead to a sustainable world. The United Nations Department of Economic and Social Affairs envisioned Sustainable Development Goals with around 169 targets focusing on sustainable growth and development throughout the world. Every sector, in every country should consider these goals while taking and planning developmental projects.
The Insurance Industry helps in strengthening various other industries in achieving the Sustainable Development Goals. Insurances are available for various different risks such as- Marine Insurance, Fire Insurance, Health Insurance, Home Insurance, Motor Insurance, Life Insurance, Property Insurance amongst others. This basically resembles the vital and vast role of insurance in every single person’s life. Insurance provides protection against a lot of financial risks that one can face and by providing this protection, the Insurance Industry contributes in leading other industries and people towards development which is more sustainability, resilience and inclusivity.
The Insurance Industry provides protection against various risks and contributes directly or indirectly in achieving and contributing to different Sustainable Development Goals, including[1]
1. Goal 1: No Poverty-
The target is to eradicate extreme poverty by the year 2030 to all men, women and children and specifically to those who are poor and vulnerable. It also involves providing basic services and access of basic resources to people for things such as property, inheritance, technology, etc. By providing protection to things important for livelihood such as for property and home, a lot of financial liability is reduced. This ensures that during an accident, a person does not drown into poverty by losing belongings.
2. Goal 3: Good-Health and Well-Being-
A large portion which helps in achieving good health and well-being is having good access to hospitals and Medicare. The insurance industry provides protection against risks which are associated with Life, Health and Medicine. When a person claims insurance during an uncertain health condition, insurance helps in reducing a major financial burden.[2]
3.Goal 5: Gender Equality-
Risks faced by men and women are different. However, insurance protection is provided to all irrespective of the gender. It also provides protection to people to whom the government cannot reach out by implementing social policies. Insurance helps in providing financial stability in times when a person losses the other family member.[3]
4.Goal 9: Industry, Innovation and Infrastructure-
The aim behind this particular target is to enhance the quality and sustainability of both region-specific and borderline infrastructure. It also includes affordable and feasible development so that human well-being is supported and well-maintained. The aim behind this particular target is promotion of industrialisation. The development of industries will not only boost infrastructural growth but increase employment opportunities as well in the countries. Insurance Industry contributes vastly to industries and its employees by providing several insurances covering Health, Life, Medicare, Fire, Property, etc.
5.Goal 13- Climate Action-
Climate Change is getting severe in the coming years and will cause even further adverse effects on the people as global warming is increasing day by day. The Insurance Industry provides protections against natural disasters. Due to climate changes, natural disasters increase and are bound to cause more impact. Against such risks, insurance helps in mitigating the effect. Thereby the Industry helps in providing protection to a lot of promoters, industries, companies, infrastructure and to most vulnerable people.
Conclusion
Insurance is a protection which is extremely important not just for companies and industries individually but also for ordinary people. Every activity and task that happens in a person’s life gets affected due to several risks one might face. Insurance hence helps in providing financial stability against these risks and in mitigating the risks. The Sustainable Development Goals were envisioned to provide a better and more stable future along with the development. The Insurance Industry thereby helps in leading to a better and more stable future.
[1] Rahul Kanojia, Insurance and its Role in Sustainable Development, 6 GJFM. 227, 228 (2014).
[2] Susan Holliday, Inna Remizova, Fiona Stewart, Developing Insurance Markets: The Insurance Sector’s Contribution to the Sustainable Development Goals (SDGs), WBG. 5, 15 (2021).
[3] Solveig Wanczeck, Micheal McCord, Martina Wiedmaier-Phster, Katie Biese, Inclusive Insurance and the Sustainable Development Goals, GIZ. 5, 18 (2017).
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