A Review of Green ICT Readiness in the Insurance Industry in Developing Nations

Benjamin Otieno, Franklin Wabwoba, Janet Shikhuyu
2019 The International Journal of Science & Technoledge  
Introduction Greening the environment is becoming a necessity in the face of wanton pollution with the world bank adopting a new vision -a green, clean and resilient world for all ( The World Bank Group, 2012). Manufacturing industry is traditionally seen to be the main contributor to environment pollution with sectors such as iron and steel, textiles and leather, pulp and paper, petrochemicals, refinery and chemicals making large contributions (Xianghua, Ruirui, & Lei, 2003) . With time,
more » ... r, the attention is shifting to the industries that were not focused on. These include banking (Weber, 2016; Oyegunle & Weber, 2015) and insurance (Ahvenharju, Gilbert, Illman, Lunabba, & Vehviläinen, 2011). There are several different definitions of green ICT. Elliot (2007) defines green ICT as the design, production, operation and disposal of ICT and ICT-enabled products and services in a manner that is not harmful and may be positively beneficial to the environment during the course of its whole-of-life. Green IS can also be defined as the IS or IT used to achieve environmental sustainability (Lei & Ngai, 2012). Molla (2009) define green ICT as an organization's ability to systematically apply environmental sustainability criteria (such as pollution prevention, product stewardship, use of clean technologies) to the design, production, sourcing, use and disposal of the IT technical infrastructure as well as within the human and managerial components of the IT infrastructure. Radu (2016), on the other hand gives a different perspective to the definition of green IT where green IT is defined as either the impact of IT on the environmental productivity of other sectors or the IT sector's own activity and its impact on environmental efficiency. Green IT can also be defined as the study and practice of designing, manufacturing, using, and disposing of computers, servers, and associated subsystems (Murugesan, 2008). In all these definitions, the key issue is conservation of the environment by responsible use of ICTs. From a functional point of view, the manufacturing industry processes and the insurance processes are very different therefore it can be assumed that the motivation for adoption of green policy in manufacturing sector would be different from insurance sector. Insurance companies play a key role in risk management in any country. In Kenya for example, there are 51 insurance companies with USD 1.73 Billion premium and USD 4.66 Billion asset base (Association of Kenya Insurers, 2015). Being agents of risk management, the insurance companies can play a major role in environment management since whatever adversely affects the environment increases the risks hence raising claim chances. To effectively do this, the insurance companies themselves must be agents of environment conservation from within. This study sought to establish if there were any appropriate frameworks that could be used for adoption of green ICT in the insurance sector in developing nations, establish the impact of drivers leading to the adoption and how prepared the insurance industry was for green ICT adoption.
doi:10.24940/theijst/2019/v7/i4/st1904-016 fatcat:zrkpttvpufa4lay3tfoggjyoom