The IAIS highlights insurers' vulnerability to climate risk
The International Association of Insurance Supervisors has recently released its Issues Paper on Climate Change Risks to the Insurance Sector.
The paper discusses a broad range of risks that climate change poses to the insurance sector and supervisory responses to those risks.
The Association concludes that climate change presents a ‘significant material challenge’ for the insurance sector, and that there is an ‘urgent imperative’ to consider insurers’ resilience to these risks. As such, the Paper may accelerate regulators’ scrutiny of climate risks.