Application paper on the supervision of climate-related risks in the insurance sector
This Application Paper aims to support supervisors in their efforts to integrate climate risk considerations into the supervision of the insurance sector. It provides background and guidance on how the IAIS supervisory material can be used to manage the challenges and opportunities arising from climate-related risks. This Paper also aims to promote a globally consistent approach to addressing climate-related risks in the supervision of the insurance sector.
Climate-related risks may affect the supervision of insurers in many ways. Therefore, an Application Paper on this topic could theoretically deal with a great number of Insuracne Core Principles (ICP). For the purpose of focusing the content of the Paper, the following ICP topics are discussed:
- ICP 9 (Supervisory Review and Reporting);
- ICP 7 (Corporate Governance);
- ICP 8 and 16 (Risk Management);
- ICP 15 (Investments); and
- ICP 20 (Disclosures).