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Länsförsäkringar Recycle Insurance


Start: 2001

Case story: A Swedish Insurance company – Länsförsäkringar – decided to take their responsibility in the business of production of stuff by simply helping manufacturers to calculate and cover the costs for recycling of the stuff produced. Länsförsäkringar put a price on recycling in the future – a cost nobody could know what it would be. With a similar risk scenario as the one within regular insurances. 

Let's say you buy a micro oven. Nobody could say what the cost would be to recycle all of its components in five to ten years time. As a manufacturer within EU, you are not allowed to sell it if you dont have a plan, and take financial responsibility, for the recycling of the product and the packaging. How could they know what the costs would be in five to ten years? They are a small manufacturing company?

Länsförsäkringar fixed that and were ready to take the risk since they would do the same for many many manufacturers of many many different products. By charging a small fee at the time of the sale to a consumer, they collected the fees and made the money grow as the products were being worn out. When there was time to recycle it, there was a already a budget "waiting" for to cover the recycling at that time.


Länsförsökringar could ease out the variations in uncertain costs by scale, so to speak. And guarantee that each and every insured product would in fact have "saved money" enough to be recycled when that day came...

A brilliant thought. A brilliant service that made global sense already back then.