Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Corporate Social Responsibility
• Governance
• Human Capital
• Community Engagement

Environmental Achievements

• Reduced carbon footprint by 21% to 1,295 tonnes
• Reduced energy consumption by 18%
• Reduced water consumption by 16%
• Recycled 28,010 kg of waste
• Recycled 20,280 kg of paper

Social Achievements

• Reached 900,191 lives through dengue, thalassemia, and diabetes awareness campaigns
• Improved 12-month persistency ratio from 76% to 83%
• Launched 'GOYO', a personal health advisor app
• Recruited 23 e-consultants targeting housewives and students
• Implemented flexi-work and work-from-home policies

Governance Achievements

• Compliance with Code of Best Practice on Corporate Governance
• Implemented Forestpin data analytics tool for fraud detection
• Conducted business continuity and disaster recovery testing
• Conducted an end-to-end review of investment functions

Climate Goals & Targets

Environmental Challenges

• Intense market competition
• Changing customer needs
• Digitization and disruptive innovation
• Employee attrition
• Inconsistent economic policies
• Regulatory changes
• Reduction in investment yields
• Increasing cost structure

Mitigation Strategies

• Best-in-class products and services
• Ecosystem partnerships
• Improved persistency strategies
• Investment strategies to increase yields
• Proactive engagement with regulators
• Cost efficiency initiatives
• Talent management and development programs
• Digital initiatives
• Work-life balance initiatives

Supply Chain Management

Supplier Audits: 207/year

Responsible Procurement

• Supplier code of conduct
• Ethical business practices
• On-time settlement of dues

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Regulatory changes

Opportunities

• Energy saving initiatives

Reporting Standards

Frameworks Used: GRI Standards: Core Option, International Integrated Reporting Council (IIRC)

Certifications: ISO 27001:2005

Third-party Assurance: KPMG Sri Lanka

Sustainable Products & Innovation

• GOYO
• Union Pension Advantage
• Union Single Premium Advantage
• Union Smart Health Plus

Awards & Recognition

• Sustainability Reporting Awards (ACCA)
• Great Place to Work® Institute
• Global Master Brand Status
• Best Employer Brand Award
• Dream Employer of the Year
• SLITAD People Development Awards
• Fintelekt Insurance Awards
• John Keells Chairman’s Awards
• National Business Excellence Awards
• Chairman’s Award
• SLT Zero One Award
• Sri Lanka Insurance Industry Award
• Celent Award

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Market Presence
• Indirect Economic Impacts
• Procurement Practices
• Employment
• Labour/ Management Relations
• Training and Education
• Public Policy
• Customer Health and Safety
• Marketing and Labelling
• Customer Privacy
• Occupational Health and Safety
• Local Communities
• Socio-Economic Compliance
• Diversity and Equal Opportunity
• Non-Discrimination
• Anti-corruption
• Energy
• Water
• Emissions
• Effluent and Waste
• Environmental Compliance
• Security Practices
• Supplier Social Assessment

Environmental Achievements

• Energy saving and emission management programmes implemented
• Water saved: 245,000 Litres
• Number of trees saved: 334
• Energy saved: 21,667 Kwh
• Carbon Footprint: 1,526 tCo2e
• 12,286 Kg Solid waste recycled

Social Achievements

• 9 dengue awareness campaigns, over 183 thalassemia awareness programmes and 18 diabetes prevention programmes conducted
• Investment in community and infrastructure projects Rs. 6 Mn
• Certified as a “Great Place to Work” in 2019
• 73 targeted training programmes
• 5 leadership programmes conducted for over 106 employees of all levels
• 9 employee engagement activities conducted by the UA recreation club

Governance Achievements

• Establishment of a transitionary Board Supervisory Committee
• Updating of the Manual of Financial Authority
• Establishment of an Investment Middle Office
• Significant progress in the implementation of SLFRS 17
• Full compliance with the provisions of the Code of Best Practice on Corporate Governance

Climate Goals & Targets

Environmental Challenges

• Slow growth, low interest rates and increased inflation
• Subdued economic growth negatively impacted consumer purchasing power
• Negative returns on equity investments due to market volatility
• Challenging economic conditions impacting premium persistency
• Constant changes in the regulatory environment
• Erratic weather conditions impacting customer segments

Mitigation Strategies

• Maintaining a diversified investment portfolio
• Introduction of value-added products
• Purchasing undervalued stocks
• Implementation of lapse prevention initiative
• Continuously monitoring regulatory changes
• Regular review of actuarial valuations and business plans

Supply Chain Management

Supplier Audits: 100%

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Erratic weather conditions

Reporting Standards

Frameworks Used: GRI Standards: Core Option, IIRC

Certifications: ISO 27001:2013

Third-party Assurance: KPMG Sri Lanka

Sustainable Products & Innovation

• Six new products launched

Awards & Recognition

• ACCA Sri Lanka Sustainability Reporting Awards 2019
• Asia Insurance Technology Awards 2019
• Best Employer Brand Award
• John Keells Group Chairman’s Awards 2018
• CA Sri Lanka Annual Report Awards 2019
• National Business Excellence Awards (NBEA) 2019

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Market Presence
• Indirect Economic Impacts
• Procurement Practices
• Employment
• Labour/Management Relations
• Training and Education
• Public Policy
• Customer Health and Safety
• Marketing and Labelling
• Customer Privacy
• Occupational Health and Safety
• Local Communities
• Socio-Economic Compliance
• Diversity and Equal Opportunity
• Non-Discrimination
• Anti-corruption
• Energy
• Water
• Emissions
• Effluent and Waste
• Environmental Compliance
• Security Practices
• Supplier Social Assessment

Environmental Achievements

• Reduced carbon footprint by 464 tCO2e
• Energy saving of 323,889 kWh
• Paper recycled 15,572 kg
• Waste recycled 17,162 kg
• Trees saved 265

Social Achievements

• 172 MDRT qualifiers (industry leading)
• 8th consecutive year as a Great Place to Work®
• Launched R U Ok Campaign
• Launched 5 new products including Sisumaga+
• Implemented agile working model for 400+ employees to work from home
• Invested Rs. 13 Mn in CSR initiatives in health and education, including COVID-19 relief and awareness efforts
• Lives touched through CSR programs: Individuals 825, Families 2,000

Governance Achievements

• Established a separate Audit, Risk and Compliance division
• Implemented a Business Continuity Plan and Agile Working Arrangements to address the impact of COVID-19
• Maintained a healthy Capital Adequacy Ratio (CAR) of 341%

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on business and economy
• Low interest rate environment impacting investment opportunities and returns
• Negative equity market performance
• IRCSL introduced insurance premium payment relief scheme
• Intense competition

Mitigation Strategies

• Adopted a forward-looking strategy focused on diversification, differentiation, and collaboration
• Realigned asset allocation and rebalanced equity portfolio
• Launched digital products and implemented digital payment channels
• Engaged with IRCSL
• Continued to innovate and build on key points of differentiation

Supply Chain Management

Supplier Audits: 100%

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards: Core Option, International Integrated Reporting Council (IIRC), Institute of Chartered Accountants of Sri Lanka (ICASL), Colombo Stock Exchange, Code of Best Practice on Corporate Governance (ICASL and SEC), Corporate Governance Framework for insurers (IRCSL), Companies Act No. 7 of 2007, Insurance Industry Act No. 43 of 2000

Certifications: ISO 27001

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Goal 7
• Goal 13

Initiatives contribute to these goals through various programs and initiatives

Sustainable Products & Innovation

• Clicklife
• Clicklife Self-Services App

Awards & Recognition

• LMD’s Most Awarded (Insurance Sector winner)
• Celent Model Insurer Award
• Domestic Life Insurer of the Year (Insurance Asia Awards)
• Best Employer Brand (CMO Global/CMO Asia and World HRD Congress)
• Great Place to Work (8th consecutive year)

Environmental Metrics

ESG Focus Areas

• Environmental management
• Corporate citizenship
• Procurement Practices
• Employment
• Labour management
• Retention, training and development
• Public Policy
• Health and Safety
• Marketing and Labelling
• Customer Privacy
• Occupational Health and Safety
• Local Communities
• Socio-Economic Compliance
• Diversity and Equal Opportunity
• Non-Discrimination
• Anti-corruption
• Supply chain management

Environmental Achievements

• 28% reduction in overall carbon footprint to 768 MT
• 17% reduction in energy consumption
• 17% water saving

Social Achievements

• Launched UA Premier Agency, a high calibre agent grooming platform
• Launched Clicklife self-servicing App
• Improved Net Promoter Score from 47 in 2019 to 58 in 2021
• Highest regular new business premium growth among top 5 competitors
• Largest Million Dollar Round Table (MDRT) qualifier pool in the industry
• One-day health claim settlement ratio increased to 93%
• Distributed over 3,000 meals to flood-affected persons
• Contributed 50 tablet computers for online learning
• Provided vital medical equipment to four government hospitals
• Launched a digital campaign on COVID-19 protection

Governance Achievements

• Established SLFRS-17 Steering Committee
• Strengthened Cyber Security and remote working infrastructure
• Implemented a Diversity, Equity and Inclusion (DE&I) programme
• No departures from Code of Business Conduct and Ethics
• External assurance on integrated reporting obtained for the first time

Climate Goals & Targets

Environmental Challenges

• Prolonged effects of the COVID-19 pandemic
• Adverse economic conditions
• Inflationary pressures
• Exchange rate volatility
• Low interest rates
• Supply chain bottlenecks
• Increased consumer risk awareness
• Increased competition
• Economic downturn
• Policy uncertainty
• Emergence of new COVID-19 variants
• Increased digitization and online transactions increasing risks associated with customer data
• Increased risk associated with corruption, bribery, and undue influence

Mitigation Strategies

• Agile business strategies
• Stringent cost optimization and containment measures
• Protecting people, supporting clients, enhancing financial strength, contributing to economic revival
• Transition to a digital operating model
• Risk management, cost containment, spend control, liquidity management
• Additional provisions for expected COVID-19 mortality claims
• Investment in IT infrastructure and capacity building
• Channel diversification through an omni-channel distribution model
• Product innovation and service excellence
• Strengthened Cyber Security and remote working infrastructure
• Enhancing the security over customer data governance
• Enhance the reporting on corruption, bribery, and undue influence
• Create within community and employees, awareness on health and safety
• Implementing more sustainable sourcing techniques
• Establishing Union Assurance as an employer of choice
• Incorporate environmentally friendly practices
• Partnerships to drive CSR activities
• HR sourcing from community
• Adherence to all the rules and regulations
• Active contribution for developing industry specific standards

Supply Chain Management

Supplier Audits: 100%

Responsible Procurement

• Code of Conduct
• Supplier sustainability requirements
• Structured selection process for new suppliers meeting stringent social and environmental criteria

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Sustainable Development Goals, Principles of the United Nations Global Compact

Certifications: ISO 27001:2013

Third-party Assurance: KPMG

UN Sustainable Development Goals

• 1
• 2
• 3
• 4
• 5
• 6
• 7
• 8
• 9
• 10
• 11
• 12
• 13
• 16

Various initiatives contributing to these goals are detailed throughout the report.

Sustainable Products & Innovation

• Union Health 360
• Union Smart Life

Awards & Recognition

• Most Innovative digital insurance company
• Best Workplace in Insurance Sector
• Most Innovative Insurance Services Provider
• Women Marketing Officer of the Year
• Women Underwriter of the Year
• Women Agent of the Year
• Fastest Growing Life Insurance Brand
• Most Innovative Life Insurance Brand
• Digital Insurance Company of the Year
• Digital Insurance Innovation of the Year
• Life Insurance Company of the year
• Most Admired Company of the year
• CEO of the year
• Visionary Leader of the year
• Bancassurance Leader
• Best Life Insurance Company
• Most Admired Insurance Company of the year
• Digital Insurance Innovation of the year
• Leading Company in Building Community Resilience
• Best Insurance Company Digital Transformation
• Best Life Insurance App
• Most Innovative Education Insurance Plan
• New Insurance Product of The Year
• Best Digital Insurance Initiative
• Most Innovative Insurance Services Provider
• Most Innovative Education Insurance Plan
• Sri Lanka’s Best Customer Service Insurance Provider
• Domestic Life Insurer of the Year
• New Insurance Product of the Year
• Silver award for Financial Reporting

Environmental Metrics

ESG Focus Areas

• Diversity, Equity, and Inclusion (DE&I)
• Climate Change
• Community Responsibility

Environmental Achievements

• Increased paper recycling by 7%
• Reduced maintenance cost per square feet by 58%

Social Achievements

• Launched "HOPE", an employee-driven CSR platform, donating essential medicines to Lady Ridgeway Hospital.
• Implemented a series of seminars to empower undergraduates.
• Partnered to provide 100 days' worth of rice to over 10,600 children.
• Introduced 100 days of Paternal Leave.

Governance Achievements

• Launched Diversity, Equity and Inclusion (DE&I) policy.
• Strengthened cyber security resilience by implementing Center of Internet Security (CIS) benchmarks and improving ISO:27001 controls.
• Implemented ‘goAML’ reporting.

Climate Goals & Targets

Environmental Challenges

• Severe domestic macroeconomic pressures, political uncertainty, social unrest.
• Record depreciation of the Rupee, unprecedented inflation, scarcity of commodities.
• Disruptions to power supply, far-reaching socio-economic implications.
• Reduced disposable income, impacting demand for insurance and premium payment capacity.
• Rising interest rates, impacting customer preference for Life Insurance.
• Increased levels of labour migration.
• Evolving socio-economic conditions impacting product demand, delivery channels, and marketing methods.
• Rising global inflation, tighter monetary policy, rising loss costs, recession threats, climate change, geopolitical upheaval, and competition from InsurTechs.
• Foreign exchange rate fluctuations and scarcity of foreign reserves.
• Low insurance penetration in Sri Lanka.

Mitigation Strategies

• Strategic focus on core business, agile strategies.
• Cost-optimization strategies, effective cost containment.
• Successful asset reallocation strategy to benefit from high-interest rates.
• Enhanced features of the Clicklife App to improve customer engagement.
• Established policy conservation unit to reactivate lapsed policies.
• Optimised reinsurance arrangements.
• Budget utilization ceilings, monthly budget review, Spend control committee.
• Incentive and allowance scheme review.
• Leveraged digital infrastructure to minimize costs.
• Implemented initiatives to discourage policy surrendering.
• Developed a product strategy suitable for the current environment.
• Expand Agency Channel, optimize bancassurance partnerships, customer retention, and capitalization on alternate channels.
• Prioritize foreign payments, obtain assistance from JKH Group Treasury.
• Negotiate different payment options with vendors.
• People development, sustainable retention plan, succession planning, salary benchmarks, improve employer brand.
• Outsourcing of the equity portfolio, changing equity mandate to a balanced mandate.
• Invest in treasury assets, invest in corporate fixed income entities.
• Offering differentiated products and innovative marketing.
• Develop retirement products and annuity return products.
• Expand and upgrade branch network.
• Recruiting right people, optimize social media for recruiting purposes.
• Develop new products to capture underserved needs.
• Use of big data and data analytics.
• Implement emission management initiatives, improve efficient use of resources.
• Strengthening bancassurance partnerships, expand agency channels.

Supply Chain Management

Supplier Audits: 100% of new suppliers screened using human rights criteria

Responsible Procurement

• Supplier sustainability requirements
• Environmental and social compliance screening

Climate-Related Risks & Opportunities

Physical Risks

• Natural Catastrophes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, International Framework, UN Sustainable Development Goals

Certifications: ISO 27001:2013

UN Sustainable Development Goals

• UN SDG Goal 1
• UN SDG Goal 2
• UN SDG Goal 3
• UN SDG Goal 4
• UN SDG Goal 5
• UN SDG Goal 7
• UN SDG Goal 8
• UN SDG Goal 9
• UN SDG Goal 11
• UN SDG Goal 12
• UN SDG Goal 13
• UN SDG Goal 16

CSR activities focused on Health, Education, and Disaster Relief.

Sustainable Products & Innovation

• Clicklife app

Awards & Recognition

• Best Workplace
• Best Digitizing Life Insurance Sri Lanka 2022
• Best New Insurance Product Sri Lanka 2022
• Most Innovative Education Insurance Plan in Sri Lanka 2022
• Best CSR Insurance Company Sri Lanka 2022
• Ranked among the 10 Best Integrated Reports
• Special award for Best Disclosure on Capitals
• One of Sri Lanka’s Most Outstanding Women-Friendly Workplaces
• Top 10 in Transparency in Corporate Reporting
• Category winner of the ‘She Thrives Award’
• Fastest Growing Life Insurance Company Sri Lanka
• Most Admired Insurance Company Sri Lanka
• Best Bancassurance Provider Sri Lanka
• Best CEO of the year (Life Insurance)
• Most Innovative Bancassurance Rewards Program in Sri Lanka
• Ranked among the top three Most Loved Life Insurance brands in Sri Lanka
• Gold Awards in the National Forum of Life Insurance Advisors
• Ranked second for CUSTOMER SERVICE EXCELLENCE 2022