Jean-François Chalifoux sat down with Joshua Geer to discuss how the Canadian insurer integrates sustainability into the business and the role of insurance in societal resilience
It's not every day that a CEO finds themselves standing in a damp basement in the aftermath of a hurricane.
But for Jean-François Chalifoux, CEO and president of Canadian mutual insurer Beneva, stepping away from the boardroom was a necessary move. Following hurricane Debby's devastation in Quebec, Chalifoux accompanied claims appraisers into the field, meeting policyholders face-to-face.
He recalled this experience during a panel discussion at the UN Environment Programme Finance Initiative (UNEP FI) Global Roundtable in Geneva last month.
Explaining a meeting with the owner of one beauty salon, he said: "She was crying because of the uncertainty."
This deeply personal encounter reinforced his belief that while insurers can cover financial losses, the recovery from a disaster also involves rebuilding lives and communities.
After the panel discussion, we sat down for an interview where he shared his perspectives on sustainability and the role of insurers in building resilience.
Progress and leadership in the sector
Chalifoux said the discussions at the UNEP FI Global Roundtable were evidence of the progress insurers are making on sustainability.
He said the sector is making strides in embedding sustainability into its core operations and is moving from "practical to actionable steps".
But Chalifoux acknowledged the pace is probably too slow and that there is more that could be implemented, especially after claims happen. He outlined the opportunity to reduce waste and "build back better" in claims processes, especially in car and property insurance.
This involves engaging those across the insurance value chain on the circular economy – a model for production and consumption that aims to keep materials in use and reduce waste.
Beneva's sustainability philosophy extends across the entire value chain, said Chalifoux, but he noted as a mutual insurer, Beneva puts customers at the centre of its environmental, social, and governance (ESG) strategy.
Chalifoux's also highlighted the importance of leaders and executives in getting involved in sustainability and setting the tone from the top. "At Beneva, I co-chair the ESG strategy with our CFO. Getting directly involved makes it easier to make a difference with employees and stakeholders."
Balancing priorities in challenging times
The world's current macroeconomic and geopolitical challenges, such as inflation and supply chain disruptions, present obstacles to sustainability. But Chalifoux argues these very issues underscore the need for urgent action.
"If we do not improve our ESG strategy, the geopolitical tensions will only get worse"
"If we do not improve our ESG strategy, the geopolitical tensions will only get worse," he said. Using Canada as an example, he noted how climate events – four major incidents this summer alone –exacerbate supply chain pressures and overwhelm businesses.
For Chalifoux, the interconnected nature of sustainability and economic stability means action cannot be postponed.
"We cannot stabilise the economy if there is not a solid sustainable framework in place," he stated. "At some point, there will be huge social issues – some countries will run out of water, others will become more vulnerable due to climate events and global warming. That is even more of a reason to act now, rather than fixing other things first."
Innovation in products and services
Chalifoux said Beneva's commitment to innovation is rooted in its founding organisations, which he acknowledged were established around social innovation in the 1940s.
"Their raison d'être is social innovation," Chalifoux explained. "We carry this history forward into Beneva."
"Our duty as insurers is to embrace innovation"
Today, this legacy manifests in the company's embrace of emerging technologies, such as electric vehicles (EVs) and solar panels, he said. While some competitors hesitate to underwrite innovative technologies due to a lack of data, Beneva is taking a proactive approach, he said. "Our duty as insurers is to embrace innovation and try to find ways to make it possible to underwrite these risks," Chalifoux said, drawing on his background as an actuary. "We need to take steps to take risks."
Bringing people on the journey
Chalifoux also stressed the sustainability journey requires engaging people and raising awareness.
"Doing both life and non-life, we see both aspects," he said. For instance, in property and casualty insurance, there is anxiety on both sides as claims multiply. Business owners and policyholders are increasingly concerned about their future protection and policies.
"It's very important to us that no one is left behind during the transition"
He added that by recognising the financial barriers some individuals face, Beneva strives to make the transition to sustainability more equitable. "For some people, it's easier to replace their gas furnace with an electric one than for others," Chalifoux said. "We are building awareness and engaging – showing possible options, what savings certain decisions would create, and what subsidies might be available... It's very important to us that no one is left behind during the transition."
As an example, Chalifoux highlighted the challenges associated with EV repair costs, which are substantially higher than for conventional cars. Beneva is piloting a programme with a third-party body shop to provide materials, employee training and tools needed for quicker repairs. "If we get the skillsets out there, we are all going to win at the end of the day," he said.
However, Chalifoux is adamant that sustainability efforts must not exclude individuals who cannot afford to switch to energy-efficient products. "At the individual level, if you exclude people who cannot avoid these switches, you are creating social inequality," he warned.
The role of collaboration
Collaboration is at the heart of Beneva's sustainability efforts and Chalifoux pointed to examples on local and international levels.
For example, in Quebec City, Chalifoux said he is part of an initiative involving different sectors to share goals and best practices that will help the city reduce emissions.
"There should be no copyright on sustainable innovations"
"This is important because industry is more responsible for the city's carbon emissions than the city itself," he said. "So, we need to step up."
He also said the company's membership of the UNEP FI's Principles for Sustainable Insurance is instrumental to its progress.
"It is crucial that collaboration happens if we want success on sustainability – collaborating from the local level to the national and international level and with our industry peers," he said.
"Climate change is not a competitive advantage," he stated. "We should share our practices, innovation, and solutions. There should be no copyright on sustainable innovations."