IAIS Report: Risks of Climate Change to the Insurance Sector
The International Association of Insurance Supervisors (IAIS) in cooperation with the Sustainabile Insurance Forum (SIF) has published an in-depth report on climate change risks to the insurance sector in July. Based on vast industry experience, the Issues Paper seeks to educate about the challenges presented by climate change. It illustrates current risks and impacts in the underwriting processes and details how the industry changes its practices in various jurisdictions in response to climate change. Further, it highlights troubling gaps that have emerged and are in need of closer supervision.
The report concludes that insurers are building up their resilience towards climate change and try to evoke climate resilience for their clients as well. However, due to the complexity of the undertaking, not all insurers are eager to indulge into the sphere of climate risks at this point. The report suggests that they may face difficulties to adapt at a later stage.
In the report, the Sustainable Insurance Forum presented nine case studies via the regulatory agencies that gave insights into how companies had adapted to climate change risks in Australia, Europe, the United States, and Brazil. In a brief summary, the agencies detailed motivations, methodology, findings and the outlook on how insurance companies incorporated climate change risks into their underwriting and investment practices.
For further information, please visit: https://www.iaisweb.org/page/consultations/closed-consultations/2018/draft-issues-paper-on-climate-change-risks-to-the-insurance-sector//file/73800/issues-paper-climate-change-risks-publ-backgr-session-sif
To download the July 2018 report, you may follow this link: https://docs.wixstatic.com/ugd/eb1f0b_0e5afc146e44459b907f0431b9e3bf21.pdf
Climate Change Insurance