The SIF and its member institutions deliver analysis, research and publications relating to sustainable insurance policy and practice.
APRA’s climate change survey of 38 large entities, across all regulated industries, highlights the range of activities and strategic responses that entities are adopting to assess and mitigate these risks. This Information Paper provides insights into the responses to APRA’s survey. Regulated entities may compare the results with their own operations and assess their responses to climate change financial risks.
Trial by Fire: Managing Climate Risks Facing Insurers in the Golden State
The Insurance Commissioner Dave Jones' new report examines the challenges and opportunities associated with climate risk, climate change, and insurance. The report further shows how climate change is a contributor to wildfire losses in California and discusses Commissioner Jones' efforts to get insurers to consider climate risk and the role insurance can play in addressing the three types of climate risks facing insurance companies: physical, transition and litigation risks.
To support supervisors in their efforts to integrate climate-related risks into supervisory frameworks, the SIF/IAIS have developed a draft Application Paper on the Supervision of Climate-related Risks in the Insurance Sector. The SIF/IAIS are now seeking feedback on this draft Application Paper through public consultation. Feedback is invited by 12 January 2021 24.00 CET (Basel time).
The Sustainable Insurance Forum's half-yearly report lays out its myriad successes in the first six months of the year, despite the catastrophic disruption caused by COVID. The report includes updates from 14 of its members and highlights the need to keep the sustainability agenda and climate change at the forefront of discussions and decisions about how best to deal with a post-COVID regulatory landscape.
This document is the Public Version of the Sustainable Insurance Forum (SIF) Question Bank on Climate Change Risks to the insurance sector. This Question Bank is intended to help supervisors develop engagement tools to better understand exposures and strategic responses of regulated entities to climate change risks and opportunities. The objective is to provide a framework, and example questions, which supervisors can adapt for use in their own jurisdictions – depending on local market contexts, objectives, areas of interest, and levels of sophistication with climate change issues.
A vast majority of insurers expect climate change to affect their business; however, while the largest globally active insurers have made progress on implementation of TCFD-aligned disclosures, implementation is low across the sector as a whole.
Recognising the diversity of supervisory frameworks across jurisdictions, this Paper identifies a number of areas where supervisors can encourage strengthened disclosures through the application of existing supervisory tools.
This paper covers climate risk assessment from both regulatory and supervisory perspectives. Based primarily on a survey of 18 insurance authorities, it describes the range of regulatory approaches that specify how insurers are expected to assess their climate risk exposures and techniques that supervisors can use to conduct their own assessment of climate risks. In most cases, supervisors rely on existing rules related to enterprise risk management (ERM) to express their expectations to insurers on how climate risk should be assessed, addressed and managed
How do French insurers manage climate change risk and where do they stand in implementing the provisions of Article 173 of the Energy Transition for Green Growth Act. In order to precisely gauge the state of the progress made within the French insurance sector, the Autorité de contrôle prudentiel et de résolution (ACPR) conducted a study of all insurance market players in France last September. 139 insurers, representing 80% of French insurers’ investments, responded. This report details the main results.
Issues Paper on Climate Change Risks to the Insurance Sector
The objectives of this Issues Paper, jointly published by the SIF and the IAIS, are to raise awareness for insurers and supervisors of the challenges presented by climate change, including current and contemplated supervisory approaches for addressing these risks. It provides an overview of how climate change is currently affecting and may affect the insurance sector now and in the future, provides examples of current material risks and impacts across underwriting and investment activities, and describes how these risks and impacts may be of relevance for the supervision and regulation of the sector. It explores potential and contemplated supervisory responses, and reviews observed practices in different jurisdictions. In doing so, it identifies gaps and emerging areas which need to be resolved to allow for effective supervision. Finally, the paper offers preliminary insights from practice, and initial conclusions relating to the supervision of climate change risks to the insurance sector.
Sustainable Insurance: The Emerging Agenda for Supervisors and Regulators
Key sustainability factors are now recognized as potentially significant for the success, safety and soundness of the insurance sector – inspiring reactions by supervisors and regulators. In its role as risk manager, risk carrier and investor, the global insurance sector plays a cornerstone role in the management of sustainability-related risks and opportunities. The risk transfer tools of insurance along with the deployment of its long-term capital base are highly relevant for many of the 17 Sustainable Development Goals (SDGs) and the goals of the Paris Agreement on climate change.
The Impact of Climate Change on the UK Insurance Sector
In September 2015, the Prudential Regulation Authority (PRA) published a report on the impact of climate change on the UK insurance sector, alongside Bank of England Governor Mark Carney’s speech, ‘Breaking the tragedy of horizon – climate change and financial stability’.
Insurance 2030: Harnessing Insurance for Sustainable Development
This report presents a suite of options that could strengthen the alignment between the insurance industry and sustainable development through to 2030. It highlights a number of existing innovations such as use of sustainability risk management frameworks, data-sharing on environmental hazards, and innovations such as index-linked insurance and microinsurance.