Sustainable development:
Presents growth and innovation opportunities for life & health insurers
From risk to opportunity:
Sustainable development presents growth and innovation opportunities for life and health (L&H) insurers and remains a key focus for the Hannover Re UK Life Branch, following an event held earlier this year in collaboration with the SDG Academy (part of the United Nations Sustainable Development Solutions Network), UK L&H insurer Vitality, and US-based precision health company Kadance. The event was part of the inaugural SUSTAIN Festival – an annual initiative by Better Insurance Network showcasing the critical role and generational opportunities for insurance innovation in building a more resilient, sustainable, and insurable future. This article explores the event's key takeaways and how, beyond reporting and risk management, insurers are approaching sustainability as an innovation agenda and an opportunity to contribute to the United Nations Sustainable Development Goals (SDGs), to guide and create new types of business value and meaningful societal impact.
The United Nations Sustainable Development Solutions Network (SDSN) efforts to raise awareness and accelerate action on the SDGs – particularly in advancing global health and wellbeing through sustainable development – resonate with our approach. At Hannover Re, we focus on solutions that empower our clients to support policyholders in leading healthier lives, while building partnerships that help close protection gaps and deliver value to customers and insurers.
The growing importance of sustainable development for life & health insurers
Learning from the SDG Academy, United Nations Sustainable Development Solutions Network and the Digital Business Accelerator at Hannover Re
Sustainable development in life & health insurance: an innovation case study
Discover how the leading precision health management company Kadance, integrates genomics and precision medicine into life and health insurance
A life & health insurer’s perspective on sustainable development opportunities
Real-world insights from UK insurer Vitality on embedding sustainability into life and health insurance, and the opportunities and challenges this brings
The growing importance of sustainable development for life & health insurers
Lorcán Hall, Senior Advisor to the SDG Academy, part of SDSN, introduced the new, free-to-access online course developed in collaboration with the United Nations Institute for Training and Research (UNITAR) and Better Insurance Network: Insurance and the Sustainable Development Goals. The course explores the role of insurance in delivering the SDGs, including a module on SDG 3 – Good Health and Wellbeing, which features Hannover Re and Vitality executives.
SDSN was established in 2012 by the UN Secretary-General to support the development of the UN 2030 Agenda for Sustainable Development and its 17 SDGs – the overarching development framework that continues to shape international, regional, and national sustainability policies and regulations that impact us daily . Lorcán also shared insights from SDSN’s new Position Paper: Insurance and Sustainable Development: partnering on risk, resilience, and transformation which explores the opportunities for the industry to drive transformational change across the 2030 Agenda’s four dimensions: economic prosperity, social inclusion, environmental sustainability, and peace and good governance.[1] Based on 42 interviews with global leaders from across the public and private sectors, the Paper presents a path for mobilising and scaling the use of insurance in development efforts. Five of the paper’s key themes were used to frame our event.
The Digital Business Accelerator (DBA) at Hannover Re, contributed to the online course, highlighting how insurers can tackle chronic disease prevention and mental health through digital innovation. With 71% of global deaths now caused by non-communicable diseases, including cardiovascular and mental health conditions, there is a significant opportunity for life and health insurers to intervene.[2] The DBA shared examples of digital tools addressing these gaps, including digital cognitive behavioural therapy platforms, supported by occupational therapists that reduce work absence, and smartphone apps that detect atrial fibrillation through a fingertip scan on a phone’s camera lens. Drawing on global experiences, the complex challenges cancer survivors face when returning to work was also discussed. Research by Hannover Life Re Australasia and Griffith University led to a tailored Cancer Survivorship Programme offering digital mental health services, nutritional support, and wearable-enabled exercise physiology for holistic recovery and reintegration.
Another initiative is the climate-responsive insurance, covered by the Natural Disaster Fund with support from Hannover Re, Global Parametrics and the Mahila Housing Trust in India. This scheme protects 26,000 women in unregulated jobs through a parametric insurance product that provides income replacement during extreme heat events.[3] Though a Property and Casualty cover, it also serves as a disability provision, helping these women avoid hazardous work and focus on their health without financial pressure. Lorcán reflected on this example and explained that:
“The team began with a societal problem, not a product, engaging directly with affected communities. Not every sustainability challenge needs a technology solution, and it’s a misconception that these issues only affect developing countries or the public sector. These are shared challenges requiring shared solutions.”
The SDGs bring to mind challenges faced by less economically developed countries, but this is a common misconception. A recent Geneva Association publication examines protection gaps in developed nations and considers how insurers can innovate more for under served populations in these advanced markets, including the UK.[4]
As reflected in both the report and through the DBA, a growing portfolio of sustainability-driven innovations is emerging. To explore these themes in practice, we were joined by Kadance, a leader in precision health solutions, and UK L&H insurer, Vitality, who shared real-world insights into how L&H insurers are embedding sustainability into their business models and the opportunities and challenges this presents.
Sustainable development in life & health insurance: an innovation case study
Darren Rowe, CEO of Kadance, shared how the precision-health management company is developing programmes tailored for the insurance industry, offering new ways to deliver personalised, preventative support. Their approach contributes to SDG 3 – Good Health and Wellbeing – with a particular focus on Target 3.4 (reducing premature mortality from non–communicable diseases and promoting mental health) and Target 3.8 (advancing universal health coverage through improved access to essential healthcare services and affordable medicines).
Headquartered at the HudsonAlpha Institute for Biotechnology, Kadance focuses on integrating genomics and access to precision medicine into L&H insurance propositions. Hannover Life Reassurance Company of America (HLR US) partnered with Kadance (formerly known as healthŌme) in 2023 to co–develop an award–winning precision cancer programme aimed at addressing critical gaps in the traditional insurance offering. By merging life science expertise with advanced precision health management solutions, the partnership bridges the gap between critical illness and life insurance, offering genomics-driven solutions that strengthen customer engagement, improve persistency, and provide safer, more effective care options.
Kadance is demonstrating how access to precision medicine can move healthcare beyond one-size-fits-all models to approaches informed by individual biological data.
This shift is reshaping 4 key areas:
Disease prediction and prevention
More accurate and efficient diagnosis
Personalised treatment
Monitoring for disease recurrence
The average wait time for a cancer diagnosis in the UK is around
With more complex cases sometimes experiences delays of up to [5]
An estimated 40% of initial diagnoses may be inaccurate.
Precision health enables a deeper understanding of diseases at the biological level, enabling access to potentially more effective treatment options. Treatments can be increasingly tailored to individual patients, resulting in therapies that are not only more effective but also reduce waste and minimise adverse side effects.
Over 1 million people in the UK are hospitalised each year due to adverse drug reactions
Many of which could be avoided through pharmacogenomic guidance —a core service included from day one in every Kadance programme.[7] Pharmacogenomic testing helps determine which medications work best for an individual’s genetic makeup, and Kadance pairs these insights with direct access to a clinical pharmacist who can help guide prescribing decisions for the individual’s healthcare team. By aligning medication regimens more closely with an individual’s genetic profile and providing ongoing clinical support, Kadance aims to reduce adverse drug reactions and improve treatment efficacy for conditions like diabetes, hypertension, and high cholesterol.
Once someone enters NHS care, access to precision health and genetic testing becomes limited...
For example, a person with a BRCA gene mutation may face lifetime risks of around:
Over 60% for breast cancer, up to 40% for ovarian cancer and significantly elevated prostate cancer risk in male carriers (possibly up to 20-50% depending on age).[8]
In the UK, an estimated 170,000-230,000 people may carry such mutations...
many of whom are unaware of their elevated risk.[9]
A simple hereditary cancer risk test could help them understand their risk, take preventative steps, and establish tailored screening protocols.
Other key barriers that often limit access to precision medicine include a shortage of genetic counsellors, underdeveloped infrastructure, cost concerns, patient trust issues, and system fragmentation. Kadance is tackling these challenges directly by providing access to licensed genetic counsellors, advanced genetic testing, and precision health experts as part of every membership, at no additional cost to the individual. This approach builds customer confidence, equips healthcare teams with actionable insights, and delivers measurable value to insurers by boosting engagement, reducing lapses, and creating meaningful differentiation, while also supporting the broader health system.
Kadance’s programme spans three critical pillars:
- Proactive health management
- Precision care management
- Survivorship & recovery
From day one, policyholders have access to precision health tools such as hereditary cancer risk testing with actionable genetic counselling and pharmacogenomic testing with a personalised medication optimisation program. If cancer is diagnosed, Kadance provides DNA-based advanced diagnostics and oncology nurse navigation that extend beyond standard care provided by health insurance, delivering precise, actionable insights to help health care teams guide treatment. Post-diagnosis, survivorship support is also a core focus. Kadance provides DNA-based recurrence monitoring and personalised support that enable earlier detection, timely intervention, and assurance of ongoing partnership throughout survivorship and beyond.
Early outcomes are encouraging:
The percentage of policyholders who engage with the service within the first week. Over half of those complete a genetic test report and make lifestyle changes based on their results.
Participation and return rates for test kits are significantly above industry norms, and the lapse rate is just 0.5%, indicating strong ongoing engagement
While the health benefits are compelling, insurers need to think beyond traditional claims functions. They have an opportunity to become proactive partners in health, delivering meaningful services that support customers throughout their lives. The partnership between Kadance and HLR US demonstrates how insurers can offer more personalised, prevention-focused solutions that strengthen policyholder engagement, build trust, and boost persistency – all while delivering long–term business value.
A life & health insurer’s perspective on sustainable development opportunities
Deepak Jobanputra, Chief Sustainability Officer at Vitality, shared insights from the insurer’s behavioural business model while addressing broader societal protection challenges through the lens of the SDGs.
Vitality’s core purpose is embedded in its shared value model, designed to benefit all stakeholders. Members gain from tailored products and services that encourage healthier lifestyles. Insurers benefit from improved claims experience and stronger persistency, while wider society gains from better health outcomes and reduced strain on healthcare systems. Although there has been a long-standing focus on commoditisation and price in the insurance industry, the past decade has seen a shift towards innovation and purpose-driven models that create long–term value.
The concept of sustainability is evolving beyond its primary environmental concerns to now including social impact, governance, and health. Without good health, economic, environmental, and social progress is undermined. The COVID-19 pandemic served as a powerful reminder of how deeply interconnected public health is with overall societal resilience.
This view is echoed in the UN position paper “Health Is Our Greatest Wealth”, which features contributions from Vitality and showcases global case studies on how L&H insurance can support sustainable development and be reshaped to deliver long-term societal value.
The evolution of sustainability in business has shifted from philanthropic gestures and CSR to ESG principles and purpose-driven strategies including the shared value model. Vitality’s alignment with the SDGs, particularly SDG 3: Good Health and Wellbeing, reflects this approach. Addressing the SDGs is complex due to their interconnected nature – progress in one area often depends on action in others. For example, improving health outcomes may require changes in urban planning, food systems, or environmental conditions. As such, there is a need for collaborative efforts as noted by Deepak:
“No single actor can solve these challenges alone. Collaboration is the new competition.”
There are also a number of environmental drivers of health volatility. Research from the UN and planetary boundary science shows increasing strain on the Earth’s systems, with six out of nine key thresholds already exceeded as of 2023.[10] These environmental pressures are contributing to rising temperatures, air pollution, and extreme weather – all of which directly impact human health and translate into greater uncertainty for insurers. Increased volatility in mortality and morbidity makes pricing risk more difficult and could eventually render L&H insurance unaffordable or unavailable in some regions, similar to challenges already seen in flood and wildfire insurance.
The carbon footprint of healthcare is also often overlooked; it contributes 4.4% of global emissions – more than aviation which further reinforces the need for sustainable transformation across the sector.[11] As governments, regulators, and consumers place growing pressure on financial services to respond to climate and health risks,
"Sustainability has become a strategic necessity and is now a licence to operate and thrive.”
Vitality’s approach to improving health outcomes is built around a simple but effective behavioural model. Members start by completing a lifestyle assessment that generates a “Vitality Age,” helping them contextualise their current health status. Tools like health checks and assessments offer further insight. Through partnerships with well-known health, gym and lifestyle brands, members access discounted services and tools that support healthier living.
Members then earn points for healthy actions such as walking 10,000 steps, which can be redeemed for rewards including free coffees, cinema tickets, and premium discounts. This daily engagement transforms insurance from a passive product into an active wellness partnership. It creates a virtuous cycle: healthier members enjoy lower premiums and meaningful rewards, while the insurer benefits from reduced claims, improved margins, and lower lapse rates.
From an underwriting and actuarial perspective, the impact of the model is clear. Highly engaged members see up to:
Lower health claims costs
Lower mortality rates
Engagement is tracked via status tiers – bronze through platinum – linked directly to health behaviour.
Importantly, the model is not just effective for the already health conscious. Studies show it is particularly impactful for less healthy individuals and older age groups, with improvements linked to reduced hospitalisation risk, weight loss, smoking cessation, and even reversal of type 2 diabetes.
The shared value model supports better outcomes across the board. Members enjoy improved health and tangible benefits. The insurer sees stronger performance through persistency and customer satisfaction. Employers report that their staff are more engaged and resistant to switching providers. Overall, society benefits through improved productivity and reduced pressure on health services.
Developed by its parent company Discovery in South Africa, Vitality’s model has expanded to 41 markets, covering over 40 million lives and facilitating around 100 million health–related activities each month. Hannover Re partners with Discovery to bring these benefits to target markets, working with insurance clients to improve access to health and wellness services. Building on our experience with emerging Vitality programmes, Hannover Re collaborates closely with clients and Discovery to tailor the shared value model to each market’s unique needs.
Conclusion
Sustainable development is a catalyst for innovation and growth, and it requires collaborative efforts across the insurance ecosystem and with organisations outside the insurance industry. At Hannover Re, we're well positioned to support L&H insurers in navigating the evolving sustainability landscape. Our commitment goes beyond just risk transfer; we actively facilitate partnerships with innovators like Kadance and Vitality to embed sustainable developments and offerings into insurance to help close protection gaps, improve health outcomes, and drive long–term business and societal value.
If you require any further information or would like to get in touch regarding any of the initiatives mentioned above, please contact Hannover Re UK Marketing.
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References
Header image: mubi.stock.adobe.com
1. Hall, L. and Walsh, P.P. (2025). Insurance and Sustainable Development: partnering on risk, resilience, and transformation. Paris: SDSN, Dublin: Dublin University Press. https://www.dublinuniversitypress.com/insurance–and–sustainable–development
Gallery images: Communications materials - United Nations Sustainable Development
3. https://www.celsiuspro.com/news–1/insuring–vulnerable–people–in–india–against–extreme–heat–events
5. Cancer waiting times: Latest updates and analysis: https://www.theguardian.com/society/2025/feb/13/sharp–rise–in–cancer–patients–in–england–waiting–months–for–treatment
7. NHS Digital. Hospital Admitted Patient Care Activity 2022–23
Osanlou R, Walker L, Hughes DA, et al. Adverse drug reactions, multimorbidity and polypharmacy: a prospective analysis of 1 month of medical admissions. BMJ Open 2022;12:e055551. doi: 10.1136/bmjopen–2021–055551
8. BRCA Gene Changes: Cancer Risk and Genetic Testing Fact Sheet – NCI
Managing elevated cancer risk in BRCA+ men | Penn Medicine
9. https://news.cancerresearchuk.org/shorthand_story/30–years–of–brca
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