2018 IAIS Climate Change Risks to the Insurance Sector

 

10The increasing frequency and extremity of climactic events is changing the way private and public investors can protect their investments against future losses. Since 2015, an increasing number of governments, central banks, regulators and financial sector stakeholders are working to drive climate risks and other sustainability factors into the core of the financial system function, through different measures and actions. The Sustainable Insurance Forum was launched in December 2016 as a global platform to focus on climate change. The objectives of this Issues Paper 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.