On January 11, the IIF submitted its response to the IAIS/SIF consultation on the Application Paper on the Supervision of Climate-related Risks. As part of its efforts to help integrate climate risk into the supervisory framework of the insurance sector, the IAIS issued a request for feedback on October 13. The Insurance Working Group (IWG) held a number of calls to discuss this request for feedback and IIF staff greatly appreciate the contributions of members during this challenging time.
The IIF response noted the importance of the IAIS’s efforts to develop a consistent approach to the supervision of climate risks. We emphasized the need for an iterative approach to supervisory initiatives around climate change that is risk-based, science-based, and reflect and leverage market-led approaches. The IIF has conducted a significant amount of work on the topic of climate risks, and we directed the IAIS to our forthcoming publication, Prudential Pathways: Industry Perspectives on Supervisory and Regulatory Approaches to Climate-related and Environmental Risks.
Given the evolving nature of climate risks, the IIF encouraged the IAIS to conduct a stakeholder dialogue on this topic, as well as on the topic of IAIS’s overall climate strategy. The IIF expressed its willingness to help organize such an event in early 2021.