Adamjee Insurance Company Limited
Climate Impact & Sustainability Data (2021, 2022)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Sustainability
- Corporate Social Responsibility
- Employee Wellbeing
- Environmental Conservation
- Diversity & Inclusion
Environmental Achievements
- Green Office Initiative (LED lighting, DC inverters, waste minimization, paperless operations, tree plantation)
- WWF Green Office Certification
Social Achievements
- Covid-19 vaccination drive for employees and public
- Blood donation drives
- Pink Ribbon Day awareness campaign
- International Women's Day activities
- World No Tobacco Day activities
- Earth Day awareness session
- World Environment Day tree plantation
- Employee wellbeing programs (sports, celebrations)
- Reduced employee turnover (13.08% vs 14.84% in 2020)
Governance Achievements
- Compliance with Code of Corporate Governance for Insurers, 2016 and Listed Companies (Code of Corporate Governance) Regulations, 2019
- Establishment of Board Committees (Audit, Ethics, Human Resources & Remuneration, Investment)
- Outsourcing of internal audit function
- Implementation of Enterprise Risk Management (ERM) framework
- Cybersecurity policy implementation (NIST framework)
- Anti-Money Laundering and Countering Financing Terrorism (AML/CFT) policy
- Whistle-blowing policy
- Grievance policy
- ISO 9001:2015 certification
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Maintain strong market position
- Increase shareholder wealth
- Add value to stakeholder relationships
- Lead the insurance industry
- Maximize long-term value for shareholders
- Increase geographical presence and market share in UAE
Short-term Goals:
- Continue achieving sustainable growth
- Strengthen risk and compliance management
- Use digital technologies to increase market share
- Diversify business portfolio in UAE
- Expand Window Takaful Operations market share
- Invest in employee empowerment
Environmental Challenges
- Covid-19 pandemic impact on business growth
- Cut-throat competition in the insurance industry
- Low insurance penetration in Pakistan
- Political and economic uncertainty in Pakistan
- Implementation of IFRS 17
- Inflationary pressures
- Currency risk (decreasing PKR value)
- Sovereign risk
- Political risk
- Liquidity risk
- Credit risk
- Reserve risk
- Capital adequacy risk
- Processing of fake or fraudulent claims
- Credit rating risk
- Cybersecurity threats
Mitigation Strategies
- Strong risk management and compliance framework
- Dedicated working group for IFRS 17 implementation
- Transactions with financially sound counterparties
- Reserves calculated with built-in margins
- Maintenance of strong capital adequacy ratio
- Regular risk assessments
- Diversified revenue mix
- Automated management information systems
- Strong control over claim payments
- Management of operational and financial aspects to maintain credit rating
- Active modelling and scenario analyses
- Prudent underwriting
- Adequate reinsurance arrangements
- Business continuity plan
- Cybersecurity awareness program
- Implementation of SIEM solution
- Adoption of NIST Cybersecurity Framework
- AML/CFT policy
Climate-Related Risks & Opportunities
Physical Risks
- Natural disasters
Opportunities
- Building climate resilience in the agricultural sector through crop insurance
Reporting Standards
Frameworks Used: Code of Corporate Governance for Insurers, 2016, Listed Companies (Code of Corporate Governance) Regulations, 2019, IFRS, Insurance Ordinance, 2000, Insurance Rules, 2017, Insurance Accounting Regulations, 2017, Takaful Rules, 2012, General Takaful Accounting Regulations, 2019, SECP Guidelines on Cybersecurity Framework for Insurance Sector, 2020, IFRS 17
Certifications: ISO 9001:2015, WWF Green Office Certification
Third-party Assurance: Yousuf Adil, Chartered Accountants
Awards & Recognition
- WWF Green Office Certification
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Sustainability
- Corporate Social Responsibility
- Governance
- Employee Well-being
- Environmental Conservation
Environmental Achievements
- Achieved carbon neutrality
- Reduced paper consumption through digitalization
- Installed LED technology and DC inverters for energy conservation
- Waste minimization through segregation and recycling
- Tree plantation activities
Social Achievements
- Employee well-being programs (mental health, healthy workspaces)
- Community investment through employee volunteerism and donations
- Support for health sector
- Women's empowerment initiatives
- Youth development programs
Governance Achievements
- Strong corporate governance framework
- Compliance with Codes of Corporate Governance
- Robust risk management system
- Transparent and fair recruitment processes
- Succession planning for key positions
Climate Goals & Targets
Long-term Goals:
- Sustainable growth
- Enhance outreach and improve quality of services
- Corporate social responsibility
Medium-term Goals:
- Continuous technological advancement
- Add value to stakeholder relationships
- Increase market reach through product innovations
- Expand geographical presence in UAE
Short-term Goals:
- Improve technical profits
- Lead the insurance industry by providing outstanding customer service
- Maximize long-term value for shareholders
- Increase market share of Window Takaful Operations
Environmental Challenges
- Devastating impact of floods
- Political and economic uncertainty
- High inflation
- Depreciating currency
- Low foreign exchange reserves
- Intense competition
- Changing regulatory landscape
- High net claims ratio (66% in 2022 vs 57% in 2021)
- Underwriting losses in UAE operations
Mitigation Strategies
- Strong capital adequacy ratio
- Effective risk management system
- Adequate reinsurance arrangements
- Diversified investment portfolio
- Corrective measures to improve profitability
- Investment in technology and digitalization
- Focus on customer centricity and service excellence
- Improved communication and stakeholder engagement
- Business continuity plan
Climate-Related Risks & Opportunities
Physical Risks
- Natural disasters (floods)
- Extreme weather conditions
Opportunities
- Building climate resilience in the agricultural sector through crop insurance
Reporting Standards
Frameworks Used: Code of Corporate Governance for Insurers, 2016, Listed Companies (Code of Corporate Governance) Regulations, 2019, IFRS
Certifications: ISO 9001:2015, WWF Green Office Certification
Third-party Assurance: Yousuf Adil, Chartered Accountants
Sustainable Products & Innovation
- Agriculture insurance (livestock insurance)
Awards & Recognition
- Best General Insurance Company in Pakistan (World Finance)
- Top 25 Companies Awards (Pakistan Stock Exchange)
- SAARC Anniversary Award for Corporate Governance Disclosure (SAFA)
- Best Presented Annual Report Awards (SAFA)
- Best Corporate Report Awards (ICAP & ICMAP)
- Asia’s Outstanding Insurance Company in Pakistan (Asia Money)
- Best Domestic General Insurer in Pakistan (Insurance Asia, Singapore)
- Environment, Health, Safety & Security Awards
- CSR Awards – Best Practices in Corporate Social Responsibility
- WWF Green Office Certification