The SIF update reports on the work undertaken by SIF and its members during January to June 2020. The report includes individual updates from 14 member regulators on recent sustainable insurance initiatives and activities, as well as noting two important recent SIF publications: an Issues Paper on TCFD and a Question Bank on climate change risks for the insurance sector.
The Sustainable Insurance Forum (SIF) is a leadership group of insurance supervisors and regulators working together to strengthen their understanding of and responses to sustainability issues facing the insurance sector. SIF members represent regulators from 30 jurisdictions (including the PRA). The ultimate goal of SIF is a global insurance system where sustainability factors are effectively integrated into the regulation and supervision insurance company.
The January-June 2020 update contains individual updates on recent sustainable insurance initiatives and actions from 14 prudential & supervisory SIF member regulators, including APRA (Australia), BMA (Bermuda), ACPR (France), BAFIN (Germany), MAS (Singapore), DFSA (UAE), NAIC and the OIC (USA).
In addition, the report summarises other significant activities undertaken by SIF in 2020 so far. These include:
- In collaboration with the International Association of Insurance Supervisors (IAIS), SIF launched its Issues Paper on the Implementation of the Recommendations of the Task Force on Climate related Financial Disclosures. The paper provides an overview of practices that supervisors have considered in the development of climate-related disclosure requirements within their markets. Bearing in mind the diversity of supervisory frameworks across jurisdictions, the paper focuses on practices that can be implemented with limited direct regulatory intervention.
- SIF published its Question Bank on Climate Change Risks to the Insurance Sector. The Question Bank aims to help supervisors develop engagement tools to better understand exposures and strategic responses of regulated entities to climate change risks and opportunities. It provides a framework, and sample questions, which supervisors can adapt for use in their own jurisdictions – depending on local market contexts, objectives, areas of interest, and levels of sophistication with climate change issues.
- In parallel and in partnership with the IAIS, SIF has also been preparing the groundwork on an Application Paper on the Supervision of Climate related Risks in the Insurance Sector, expected to be finalised in early 2021. This will provide background and guidance on how the IAIS supervisory material can be used to best face challenges and opportunities arising from climate related risks.
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