Corporate responsibility is a hot topic and standard business practice in the reinsurance industry, for good reason. It is important that companies creating large profits are aware of how they impact their surroundings and how a healthy balance can be reached between what they give and what they take. The following is a discussion of what corporate responsibility is and what Capsicum Re doing this year to give back.
Corporate responsibility is defined as a form of corporate self-regulation integrated into a business model. The European Commission defines CSR as “the responsibility of enterprises for their impacts on society”. So, what are the reinsurance impacts on society? We do not trade in physical commodities or demand large areas of land to run our businesses, which are some of the main drivers behind corporate giving. Rather our business is based on selecting the most profitable risks and our help should therefore be directed at those people or environments unable to effectively access our products and aim to alleviate suffering and equipping underinsured communities to build their resilience.
In 2015 Nepal was devastated by a large earthquake, which is still causing significant hardship to the country. Less than 5% of the people and property affected by the natural disaster were insured. Walking around villages in Nepal, two years on, large cracks in infrastructure can still be seen and many houses that were reduced to rubble have not yet been rebuilt.
Capsicum Re Foundation
To help meet this challenge, the Capsicum Re Foundation has, this year, set its sights on raising £100,000 to build a specialist vocational school in Kathmandu, Nepal through the Nepal Youth Foundation. The vocational school will train people in the skills required to rebuild the country’s crumbling infrastructure. It is vital to arm people with the education and training needed to help themselves. Over time, this approach will not only help them to get back on their feet while rebuilding their communities, but provide real opportunities to improve the country’s skill base and offer meaningful employment. Although we can only reach so many in a population of 28 million our work is important, and meets an important internal connection between the people we serve through our insurance and reinsurance business and those that are unable to access them.
The Capsicum Re team’s commitment to this project is not just delivered by handing over of money, but by the direct involvement of our team in raising it. By taking on The Race to the Stones Ultra Marathon, a 100km hike through the English countryside along with 40 Capsicum Re colleagues.
Underlying goal of corporate responsibility
The underlying goal of corporate responsibility is clear; create a better world in which to do business and in which to live. Capsicum Re has chosen its endeavours conscious that we must give back in a way that reflects the fundamentals of our business and offers the opportunity to extend its value to those for whom today effective insurance cover may be beyond their reach.
To find out more about Capsicum Re’s Race to the Stones event please visit: Everyday Hero