Gimar special topic edition the impact of climate change on the financial stability of the insurance sector

5.2.2 IAIS Member initiatives
As part of the data collection, IAIS Members were 
asked to provide information on their analysis 
of climate-related risks and measures taken, 
or expected to be taken, to address climate-
related risks, with a focus on risks stemming from 
investment exposures. 
Around 30% to 45% of respondents are already 
undertaking their own analysis on climate risk, 
most of which include a quantitative component. 
An equally sizeable share of Members are planning 
analytical work in the near future. 
Based on information received from Members, it 
appears that most Members have issued, or are 
planning to issue, requirements or supervisory 
guidelines on public disclosures, scenario analysis/
stress testing and increased supervisory reporting. 
Most Members currently are not considering 
setting investment limits (see Graph 20).
Other supervisory initiatives that are being 
implemented by Members include:
»

Conducting screenings of assets based on 

ESG criteria 
»

Maintaining a dialogue with the industry on 

climate-related risks on a bilateral basis
»

Using the “prudent person principle” in 

assessing investment exposures from insurers 
(ie, ensuring that insurers only invest in assets 
MOST IAIS MEMBERS 
HAVE ISSUED, OR ARE 
PLANNING TO ISSUE, 
REQUIREMENTS OR 
SUPERVISORY GUIDELINES 
ON PUBLIC DISCLOSURES, 
SCENARIO ANALYSIS/STRESS 
TESTING AND INCREASED 
SUPERVISORY REPORTING.

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41
0%
20%
40%
60%
80%
100%
Supervisory reporting
Investment limits
Scenario analysis and
stress testing
Public disclosures
Currently in force In Development Planned in near future Not considered No indication
Investment
exposures
Transmission
channels
Scenario
analysis
0%
20%
40%
60%
80%
100%
Yes, qualitatitive
Yes, quantitative
Yes, both
Foreseen in near future
No
that they can properly identify, measure, 
monitor, manage, control and report) 
»

Other measures not directly related to the 

investment exposures, such as awareness-
raising and training initiatives, setting up 
dedicated units or hubs within the supervisory 
authority, considering inclusion of climate 
in natural catastrophe models used for 
capital requirements and including climate 
considerations into the governance and/or 
Enterprise Risk Management requirements.