Response to IAIS consultation on climate risk supervisory guidance (part one)

In the first of a series of consultations, the International Association of Insurance Supervisors (IAIS) sought views on updating its Insurance Core Principles (ICPs) and its 2021 Application Paper on the Supervision of Climate-related Risks in the Insurance Sector.

In our response, we propose that the IAIS should incorporate standards for transition planning into its ICPs. This is to help mitigate the climate risks faced by individual insurers as well as the systemic risks that climate change poses to the wider economy, and to ensure that transition plan regulation for insurers is introduced by supervisors in a manner that is effective and globally consistent. In addition, we propose that the IAIS should issue guidance on how transition planning should be reflected in corporate governance and risk management processes.