Co-op Insurance to take an ethical approach

Co-op Insurance Society (CIS) has announced plans to take a more ethical approach to business, having decided to take policyholders' ethical views into account, regarding companies it invests.

CIS will take this approach regarding life, investment and general insurance businesses and the decision to do so marks the first time an insurance firm has taken an ethical approach.

Commenting on the development Barry Clavin, SRI policies manager at CIS, told the Observer: " The top issues are the environment, human and labour rights, animal welfare, how things are marketed and social inclusion. The people for whom money came first were in the minority.

"We never believe that people should have to compromise for ethics so the pricing has to be competitive.

"As a major shareholder with £21 billion of assets, we will be able to tell companies that our customers have a real concern with a particular aspect of their business. We will then try to influence that company to change," he added.

Last year Co-operative Bank rejected £8.7 million worth of business for ethical and ecological reasons.