Category: ESG fundamentals · Reviewed by Tim Roche, Director · PI & Commercial · Last reviewed 2026-06-10
The Principles for Sustainable Insurance (PSI) are a voluntary UN-supported framework launched on 19 June 2012 at the UN Conference on Sustainable Development (Rio+20) in Rio de Janeiro, providing four principles for integrating environmental, social and governance issues into insurance underwriting and product development. Lloyd’s of London joined the PSI in 2021, alongside many UK composite insurers.
Category: ESG fundamentals Also known as: UN PSI, Principles for Sustainable Insurance, PSI Established / Date: 19 June 2012 (launched at UN Rio+20 Summit) Related concepts: PRI Principles for Responsible Investment, ESG insurance underwriting, ESG underwriting policy
The PSI consists of four principles. Principle 1: We will embed in our decision-making environmental, social and governance issues relevant to our insurance business. Principle 2: We will work together with our clients and business partners to raise awareness of ESG issues, manage risk and develop solutions. Principle 3: We will work together with governments, regulators and other key stakeholders to promote widespread action across society on ESG issues. Principle 4: We will demonstrate accountability and transparency in regularly disclosing publicly our progress in implementing the Principles [1].
The PSI is administered by the UN Environment Programme Finance Initiative (UNEP FI) and is positioned as the insurance-sector counterpart to the Principles for Responsible Investment (PRI), launched in April 2006 [2]. While the PRI focuses on investment activities, the PSI addresses underwriting, claims and product development. Many insurance groups are signatories to both. As of recent UNEP FI figures, the PSI has more than 240 signatories collectively representing more than US$15 trillion in assets and a significant share of global insurance premium.
The PSI has produced sector-specific guides, including guidance on managing ESG risks in non-life underwriting (June 2020), tobacco-related underwriting and investment, and World Heritage Sites. These guidance documents inform UK underwriting practice but are not directly enforceable.
PSI signature is voluntary and not directly mandated by UK statute or regulator rule. However, the PSI framework has been integrated into UK regulatory and supervisory expectations. The PRA’s SS 3/19 of April 2019, updated July 2020, sets out climate-related risk expectations consistent with PSI Principle 1 [3]. Lloyd’s of London joined the PSI in 2021 and references PSI alignment in its market-wide ESG strategy of December 2020 [4]. The Association of British Insurers’ Climate Change Roadmap of July 2021 references the PSI as part of the international framework supporting UK insurer net-zero commitments [5].
The PSI Principle 4 disclosure requirement aligns with the FCA’s PS23/16 SDR regime expectations for transparency in sustainability-related claims [6] and with section 414CB Companies Act 2006 climate disclosure requirements where signatories are in scope.
UK signatories to the PSI include major composite insurers and Lloyd’s of London. Signatories are required to publish an annual disclosure of progress against the four principles. The disclosure may take the form of a standalone sustainability report, integration into the annual report, or a dedicated PSI disclosure document, and is hosted on the UNEP FI PSI website.
The PSI has also convened sector-specific collaborative initiatives. The Net-Zero Insurance Alliance was launched at the G20 Climate Summit in July 2021 with PSI involvement and provided methodology development for insurance-associated emissions measurement. Following antitrust concerns raised by various competition authorities, several large insurers departed the NZIA in 2023, and the framework’s methodology contributions have continued through the Partnership for Carbon Accounting Financials’ insurance-associated emissions standard published November 2022.
UK insurance brokers are not direct PSI signatories but are increasingly subject to indirect expectations through their insurer relationships and the FCA’s broader sustainability framework.
For UK businesses, an insurer’s PSI signatory status is one indicator of underwriting-side ESG commitment. Signatory insurers typically operate documented ESG underwriting policies, apply ESG due diligence and engage with insureds on transition planning. PSI signature is often correlated with membership of related frameworks including the ABI Climate Change Roadmap and the Climate Financial Risk Forum.
For UK SMEs and corporates, the PSI principles indirectly influence the questions encountered at proposal and renewal. Principle 2 in particular encourages insurer engagement with insureds, which manifests in transition-plan discussions, ESG data requests and offers of risk-management consultancy services from insurers in high-impact sectors.
A UK industrial insurer that is a PSI signatory engages with a long-standing manufacturing client on the client’s transition plan ahead of D&O renewal. The engagement, recorded in the insurer’s PSI annual disclosure, includes a workshop on scope 3 emissions measurement, supply-chain due diligence and modern slavery compliance. The client benefits from technical support that improves its TCFD-aligned disclosure quality, and the insurer renews the £25 million D&O programme at flat terms supported by the strengthened ESG governance.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
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