IAIS launches second public consultation on climate risk supervisory guidance

Written by Adam Cadle

24/11/2023

The IAIS has launched a second public consultation on climate risk, aimed at promoting a globally consistent supervisory approach to address climate-related risks in the insurance sector.

Climate change is a key strategic theme for the IAIS as it is a source of financial risk impacting the resilience of individual insurers and could lead to financial stability risk.

This consultation covers issues related to market conduct supervision and climate scenario analysis. In particular, the IAIS is seeking feedback on two draft application papers:

• Draft Application Paper on climate risk market conduct issues in the insurance sector: This paper aims to support supervisors in identifying instances of potential unfair treatment of consumers that can emerge in relation to natural catastrophe (NatCat) protection products or sustainability-focused products.

• Draft Application Paper on climate risk scenario analysis in the insurance sector: This paper focuses on the use of climate-related scenario analysis as a tool used by both supervisors and insurers to understand the risks to which the insurance sector is exposed at a micro- and macroprudential level.

Comments are invited by 23 February 2024 24:00 CET. For more details, please click here.

A public background session will be held via webinar on 12 December 2023 13:00 to 14:30 CET to present the papers and answer questions from stakeholders.

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