Swiss Re

Tunoy Mukherjee

Swiss Re in Europe
Global Headquarters Swiss Re Ltd Mythenquai 50/60 PO Box 8022 Zurich Switzerland +41 43 285 2121 F: +41 43 285 2999
5/10/2012

Few ethical issues dealt - in terms of HR, socially and Globally

INTRODUCTION Swiss Reinsurance Company Ltd generally known as Swiss Re, is a Swiss reinsurance company. It is the worlds second-largest reinsurer, after having acquired GE Insurance Solutions. The company has its headquarters in Zurich. Founded in 1863, Swiss Re operates through offices in more than 25 countries. What is Reisurance ? Reinsurance is insurance that is purchased by an insurance company (insurer also sometimes called a "cedant" or "cedent") from another insurance company (reinsurer) as a means of risk management. The reinsurer and the insurer enter into a reinsurance agreement which details the conditions upon which the reinsurer would pay the insurer's losses (in terms of excess of loss or

proportional to loss). The reinsurer is paid a reinsurance premium by the insurer, and the insurer
issues insurance policies to its own policyholders. The main reason for insurers to buy reinsurance is to transfer risk from the insurer to the reinsurer. History On 10/11 May 1861, more than 500 houses went up in flames in the town of Glarus. Two thirds of the town sank into rubble and ashes; around 3000 inhabitants were made homeless. Like the fire of Hamburg in 1842 (which led to the foundation of the first professional reinsurers in Germany) the great fire of Glarus in 1861 showed that insurance coverage was totally inadequate in Switzerland in the event of such a catastrophe. Hence the need to provide more effective means of coping with the risks posed by such devastation. What They Do The Swiss Re Group is a leading wholesale provider of reinsurance, insurance and other insurance-based forms of risk transfer. Dealing direct and working through brokers, its global client base consists of insurance companies, mid-to-large-sized corporations and public sector clients. From standard products to tailor-made coverage across all lines of business, Swiss Re deploys its capital strength, expertise and innovation power to enable the risk taking upon which enterprise and progress in society depend.

Business Ethics MBA

Submitted by : Tunoy Mukherjee

Key Etical Questions

What Does Corporate mean for Swiss Re ? It is their conviction that only by bringing their entrepreneurial endeavors into harmony with responsibility for their business environment will we secure their long-term success. Swiss Res business environment is in flux, presenting ever new opportunities and risks. Key factors such as climate change, technological progress, demographic trends and the effects of the globalisation of financial markets constitute major challenges. Swiss Re meets these challenges actively and flexibly with tailor-made solutions. Their experts analyse the vast diversity of risks in their complex world, be they natural hazards, population trends or new diseases, and develop solutions on the basis of their expertise. It is also their aim to continually push back the boundaries of insurability. Swiss Re assumes social responsibility and fulfils economic, ecological and social needs an understanding of their role which we have put into practice in their corporate responsibility strategy. its principles for instance on the subjects of environment, staff, human rights and anti-corruption offer us important action guidelines and standards for realising corporate responsibility in their core business Group-wide. How is the ethical Corporate responsibility anchored in Swiss Re core Business? Insurance and corporate responsibility are very similar in nature. At the heart of both lies a promise for the future. The concept of insurance is built on fulfilling obligations from insurance contracts on a sustainable basis. For us as a global risk carrier, a prospective, prudent and responsible approach is therefore self-evident. Swiss Re takes pride in being a law-abiding, ethical and socially responsible organisation that deals fairly and professionally with its stakeholders their employees, shareholders, customers, government regulators and the general public.

Business Ethics MBA

Submitted by : Tunoy Mukherjee

For the implementation of their commitment, we put a special focus on three areas. They form the pillars of their corporate responsibility framework:

their corporate governance regime; their efforts to integrate sustainability in their core business and operations; their activities as a good corporate citizen.

In addition, we attach high value on two areas that underlie all their efforts to be a responsible company: engaging in dialogue with key stakeholders and being a good employer. Accountability is an integral part of being a responsible company. Since 1998, we have been publishing a yearly Group-wide report that provides a comprehensive account of their key activities and achievements What is the focus of Swiss Res ethical social responsibility? In a widely cited report, some of the worlds leading climate scientists conclude that global warming will result in more extreme weather events and urge strengthening disaster preparedness. Swiss Re contributed to the new report with its research on climate risks and expertise in climate adaptation. Even if all carbon emissions were stopped today, the worlds climate would continue to change. This makes climate adaptation an urgent priority. Investing in measures that help communities better cope with floods, droughts and severe storms will go a long way to preparing them for a future marked by more weather extremes and natural disasters. What are the ethical responsibility towards employes? Their staff provide the basis for their success due to their specialist knowledge, experience, motivation and commitment. We invest continually in their development and provide all staff with equal opportunities and excellent working conditions. We want to recruit the best people available and imbue them with enthusiasm for their business. Swiss Re has enjoyed a consistently low staff turnover rate for many years further proof that it is an attractive employer.

Business Ethics MBA

Submitted by : Tunoy Mukherjee

In their human resources work, we concentrate on people. We are a successful and valued employer, not only adapting to the current demands of the labour market but also taking into account the changing needs of their staff. Flexitime, special conditions for employees with children, the promotion of healthcare, and social counselling services are just some of the factors that make Swiss Re a respected employer. Training and personal development Their aim Fair and performance-related remuneration Combining career and family In the long term, we can only maintain and enhance the high quality of their work if their employees are satisfied, and so we offer their staff first-class conditions. These include fair, performance-related remuneration that ensures everyone is treated equally in terms of opportunities and recognition. Health at the workplace Programmes and measures The well-being of their staff is a matter of priority. Swiss Re is therefore actively and firmly committed to promoting their health. For instance, as well as medical care, sport and relaxation programmes, we also offer personal measures to help staff return to working life after a prolonged absence. Diversity is their strength The different backgrounds, cultures and religions of their staff are but three factors key to Swiss Res success because people from different backgrounds contribute an equally varied range of individual skills and strength Major ethical issue that Swiss Re or any reinsurance company faces globally is Arbitration Consideration of ethical issues in reinsurance arbitrations is important to enhance the fairness and integrity of the process. In addition, as reflected in recent judicial decisions, the courts have (rightly or wrongly) become more active in vacating awards because of purported ethical violations. An understanding of ethical issues is thus important to avoid having awards vacated and the attendant time and expense involved in going through another arbitration.
Business Ethics MBA Submitted by : Tunoy Mukherjee