How insurance companies can keep the roads safe
The insurance industry worldwide has a key role to play in keeping the roads safe, by reducing to half the number of deaths resulting from road accidents.
First, let us consider these figures: toad traffic injuries are a global public health and development problem. They kill over 1.25 million people per year, injure another 20-50 million and cost between 1-5 per cent of a coutnry’s total GDP (the cost is higher in developing countries)
According to a report by AXA Insurance, the Global Road Safety Partnership, and the United Nations Environment Programme Finance Initiative’s Principles for Sustainable Insurance, “There is a strong business case for tribute to a reduction in the incidence of road crashes by reducing risks on the road.”
This can be done by embedding road safety incentives in their business models, in order to provide benefits to their customers and the wider community.
“Motorists must realise, that even if they arrive late for a Ramadan event, people will understand. Good time management is crucial and motorists are urged to leave early enough and allow for a time buffer to reach their destination on time. We need to display a caring attitude for ourselves and for others in this very special period,” said Mustafa Oliyath Vazayil, managing director, Gargash Insurance Brokers.
Given that they actually have many levers for action at their disposal to encourage safer driving —insurance companies cover almost 1 billion vehicles globally, estimated at $626b (Dh2.3 trillion) premiums in 2016 — insurance companies should foster risk prevention with road users every day and work with governments for enforced regulation and infrastructure. AXA, for example, has come up with a slew of initiatives “to act decisively on improving road safety, among which are: > Innovative education and awareness programmes > Partnerships with public authorities to encourage stronger road safety regulations > Road safety adds-on embedded in products and services > Studies and scientific research on road safety.
“At AXA Gulf, we believe that we have a role to play in supporting the communities in which we operate and, in turn, to help create stronger and more sustainable societies. We aim to share our extensive knowledge on protection and risk management to support the authorities in their efforts to increase awareness of safe driving,” said Cedric Charpentier, CEO of AXA Gulf, in a statement sent to Khaleej Times. Moreover, the potential benefits of these initiatives for society are even larger, as road safety improvements are also linked to environmental and health issues, AXA added.
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