Implementing eco-friendly programs and saving money are going hand-in-hand for some local insurance agencies and companies.

Diversified Insurance Industries (DII), an independent agency covering the entire mid-Atlantic, said its green initiatives such as recycling and going paperless have saved the independent agency $10,000 annually.

Mike Papa

“We see becoming green as our responsibility in being a good corporate citizen, but we also feel it’s the right thing to do,” said Mike Papa, senior vice president of DII.  “Additionally, there is often also an alignment with our bottom line.  That is, becoming green actually saves resources and money in the long run.”

DII went green three years ago and is striving to be a paperless organization someday.  Until then, it has an involved recycling program: all copy paper is 100% recycled, and all used paper is shredded and recycled through a company that destroys and recycles confidential documents.

The Maryland Automobile Insurance Fund has also recognized the benefits of going green.

Susie Allen, green coordinator for Maryland’s auto insurer of last resort, said that by eliminating 99% of monthly paper mailings – through the use of electronic communication – is saving $73,668 per year.

“I first became interested in MAIF ‘going green’ when I made the connection between smart business practices and corporate social responsibility,” said Kent Krabbe, executive director of MAIF.  “I realized that making our business paperless would increase efficiency and save money.  But I also realized the great savings to our environment.”

‘Near and dear to my heart’

MAIF has been working to reduce its carbon footprint for about two years.

The company has also instilled a strict recycle, reuse, and donate program within the agency: almost everything is recycled, and materials that cannot be recycled are donated, Allen said.

For example, MAIF donates toner cartridges to local schools that, in turn, give them to a program that awards points to organizations that give such things as cell phones and toner cartridges. Points can be used to buy things such as new school equipment.

MAIF appointed Allen as its green coordinator two years ago to oversee the agency’s initiatives in addition to her job in corporate compliance.  “Green is near and dear to my heart,” said Allen, and so she volunteered for the position.

Employees at MAIF are also dedicated to reducing their carbon footprint, she said.

“Employees are excited to be working in a place that actually cares about their footprint and trying to make it a better place,” said Allen. “So, a happier work environment, they say, increases work productivity, too.”

Big insurers seeing big savings

Philadelphia-based health insurer Independence Blue Cross also has recognized the benefits of going green.  It saved $1.2 million in power usage through print, server, and desktop strategies from 2005 to 2008.  The company expects to save another $2.5 million in power consumption and 23,000 tons of CO2 emissions by the end of 2010.

“Independence Blue Cross has a number of initiatives underway to protect our environment and use our resources as wisely and efficiently as possible,” said Debby Fay, director of facilities management at IBC. “Careful use of our resources helps reduce our administrative costs and minimize the potential negative environmental impact of our business.”

To save energy, IBC installed energy-efficient air-conditioners, replaced its computer servers with virtual servers, and replaced some desktop PCs with Thin Client desktops.  IBC’s headquarters has motion-detectors in restrooms, so energy is used only when needed, and  also lighting units that dim as more sun enters a room.

Highmark Inc., the state’s largest health insurer, was named top green information technology company in 2008 by Computerworld magazine.  The health insurer saved $329,000 in energy costs with its 5.6% decrease on energy consumption last year after installing energy-efficient lighting, and reducing heating and air conditioning usage.

Virginia Beach, Va.-based Optima Health has also recognized the benefits of going green. The health insurer is working has a goal to deliver Evidence of Coverage and Certificates of Insurance documents online rather than in print.  This move will reduce paper use by 90% this year, saving $250,000, according to Optima.

“By taking little steps toward going green, we not only help everyone in a broad sense, but more immediately, we reduce waste, improve satisfaction, and save money,” said Becky Lawson, corporate communications consultant for Optima.

Optima made its green initiatives a priority 18 months ago and is particularly concerned with using electronic means to save paper, according to the health insurer.  Most employee communications regarding benefits are handled through software called Xert, and Optima hopes to make all employee communication electronic by 2010.

The health insurer will also save about $250,000 annually by reducing the production and usage of printed provider directories by 50% this year.

Optima’s employees have chipped in, Lawson said. “The staff is much more conscious of waste,” she said.  “From recycling soda cans and paper, to initiating a new idea to reduce printing; everyone is on board.”

This story originally appeared in the August 2009 print edition of Insurance & Financial Advisor.