Evaluation of the governing equations.
Bending Stress - M / Z where Z = I / c
I - Moment of Interia = pi/64.(do^2-di^2)
c - distance from the neutral axis (centre line of pipe) to the point of maximum bending stress (OD / 2)
Now, section modulus is a measure of a 'pipes' resistance to bending. Higher section modulus makes a 'pipe' more stiffer. (increases Z), and for the same applied Moment M, results in lower bending stresses.
Pluging values into your equation and studying interms of a constant 'M', you will realize the relation