ESG Policy | Velocity Risk

Velocity HoldCo., LLC, its affiliates and subsidiaries’ (collectively “Velocity”) vision is to provide best-in-class specialty property insurance for catastrophe-prone areas. We use our appetite for uncommon risk, solutions-focused underwriting, and outstanding claims management to create greater opportunity for all. We believe in the value of relationships, speed, transparency and being in it for the long haul.

Velocity embodies many of the principles set forth by Environmental, Social and Governance (“ESG”) governing bodies. In 2022 we implemented a formal policy to share our ongoing commitment to sustainability in the property insurance marketplace.

Our ESG commitments:

Environmental – We are committed to doing our part in protecting the environment in the cities where we operate and the communities where we offer insurance. One focus area is to reduce our carbon footprint through the support of organizations and methodologies that aid in mitigating the severity of natural disasters, including hurricanes, wildfires, floods, and severe convective storms.
Social – We focus on providing the best work environment for our employees. We provide competitive salaries, premium-paid health benefits, and additional perks. We invest in and provide a volunteer reward program and encourage employee involvement. We have a robust employment program that promotes, nurtures, and sustains a diverse, equitable and inclusive organization through commitment, transparency, and consistent actions.
Governance – Our ESG policies stem from a leadership team that values the importance of sustainable markets and investing. We are committed to responsible growth and building strong audit, compliance, and internal control resources to ensure accountability within the organization, high ethical standards and adherence with the laws and regulations that govern our operating territory.

We believe that insurance plays an important and essential role in society and, as an industry, supports ESG. Insurance is a vital asset for all individuals and business owners to not only help pay for covered losses, but also aids in managing cash flow uncertainty, allowing for a more efficient use of resources, promotes risk control and reduces the financial burden on society. The industry can further advance the goals of ESG by underwriting and selecting the types of risk that promote a sustainable market.

Velocity’s ESG policy focuses on five overarching areas: underwriting & operations, technology, employee engagement, community engagement and climate. The policy outlined below provides additional detail and transparency on initiatives already in place and those on the horizon for future implantation.

Strengthen underwriting & operations initiatives and actions
1. Commitment to agents & brokers
  1. Continue to build strong relationships with key brokers to encourage identification of desired products/territories and improving the selection of desirable risks.
  2. Share our ESG commitment with brokers, support opportunities that allow them to participate in ESG, and solicit input for goals and initiatives to support each other.
2. Commitment to customers (policyholders)
  1. Professional and fair customer treatment for market participants.
  2. Design and development customer-focused products that balance with our commitment to capital providers.
  3. Provide best-in-class, fair and ethical handling of claims.
3. Commitment to investors
  1. Effective management and continuous monitoring of products, underwriting guidelines, pricing, and diversification to ensure positive growth with acceptable risk.
  2. Develop and refine a strategic “View of Risk” to employ superior modeling, incorporating climate change, the impact of insurance in the marketplace, changes in behavior (social inflation), changes in building codes and changes in economic impact.
  3. Focus on:
    1. Manage and price our portfolio against extreme events to protect capital.
    2. Incorporate future climate change predictions to consider alternate views of risk in our pricing.
    3. Incorporate stress and scenario testing.
    4. Investigate model miss opportunities.
  4. Strong compliance and risk management of exposures and assets.
  5. Provide thought leadership to the market on the impact of climate change in property insurance.
  6. Support the growth of property insurance clients that has a positive impact on climate change and help identify those ideal risks for our capital providers.
  7. Invest in weather science and climate focused risk portfolios in partnership with capital providers.
4. Support laws and regulations that encourage smarter building for catastrophic risks
  1. Partner with Subject Matter Experts such as NGOs and universities in combatting climate change and support research in smarter building.
  2. Engage in opportunities that improve expertise and knowledge on resiliency.
  3. Promote and endorse certified builders who offer better building options and materials.
Encourage innovative technological advancements
1. Continue to support greener behavior.
2. Our updated Policy Administration System is set up to automatically email policy documents, unless physical mailing is required.
3. Innovation has been a key value, and we continue to encourage innovation, creating space and time for all ideas and viewpoints.
4. We embrace the entrepreneurial spirit at Velocity and encourage employees to be creative and make bold suggestions for technological advancements that improve operations.
Promote a strong and dynamic employee engagement program that focuses on building a positive culture and employee well-being
1. Attract, develop, and retain knowledgeable and diverse individuals who continue to build the organization through passion and innovation.
  1. Build a robust Learning & Development program through company-offered in-person, on-line learning, and recorded webinars. Courses include insurance-based training, leadership & coaching and other skills courses.
  2. Offer tuition reimbursement programs to support learning outside of Velocity.
  3. Encourage participation in team building and cultural events.
  4. Monitor employee engagement and satisfaction through regular surveys. Velocity ranked in the top 100 of Best Places to Work in Insurance for the past two years and continuously scores well above average in semi-annual eNPS surveys.
2. Establish a robust employment policy that promotes, nurtures and sustains a positive organization through commitment, transparency, and consistent actions.
  1. A meritocracy that is comprised of skilled and talented individuals of all backgrounds.
  2. A multicultural workforce that is supported through enhanced recruitment initiatives and merit-based advancement opportunities.
  3. Industry disruption that leads to business results by promoting divergent thinking attributed to multifaceted backgrounds.
  4. Leadership that models and inspires thoughtful curiosity and challenges outdated thinking.
  5. An environment that builds upon fairness and equality for each other and for those in our business ecosystem.
3. Support employee volunteer and social program passions with matching grants and rewards for volunteer hours.
Support community engagement programs that focus on helping families and businesses recover from and avoid disasters through strategic NGO partnerships
1. Build resilient communities through support of NGOs that build and rebuild homes and businesses that can withstand catastrophic environments.
2. Support charities that promote strong relationships with brokers.
3. Partner with organizations and universities that research and rebuild to reduce long-term effects of coastal deterioration and the impacts of hurricanes.
Advocate climate action throughout our operating territory
1. Building operations – install motion detection lighting, low energy lighting, encourage recycling and use of refillable water bottles.
2. Reduce energy use:
  1. Limit employee travel and encourage video conferences.
  2. Permit employees to work from home 2-3 days per week to help reduce the use of fossil fuels, traffic, and pollution.
  3. Allow for full-time remote employees with limited to no travel.
3. Promote recycling and make it easy for employees to participate, including upcycling/recycling technical hardware.
4. Partner with vendors who support ESG initiatives.
5. Encourage use of alternate modes of transportation, including carpooling, bike-to-work, and train transportation.
6. Offer Commuter Benefits, allowing employees to set aside pre-tax dollars to offset commuter expenses, such as train, van pool, etc.