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

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Map 2:
Jurisdictions that participated in the data collection
climate-policy relevant by some investors and 
not relevant by other investors
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Within a country, physical risk impacts may 

vary greatly between regions, municipalities 
or even between different postal codes, 
depending on for instance the proximity to 
the coast or the level of elevation. This is 
particularly relevant to the real estate analysis, 
as the ND-GAIN and WRI methods rely on 
country-wide rankings rather than the climate 
quality of a single building.
Specific limitations and assumptions relating to the 
classification of equity, corporate bonds, and loans 
and mortgages in climate-relevant sectors are 
described in subsection 3.4.1.1.
3.3 DATA COLLECTION AND COVERAGE
To support this report, the IAIS collected 
quantitative and qualitative information from IAIS 
Members. This TCDC is similar to the sector-wide 
monitoring data collection of the regular GME, as 
it covers data at a sector-wide level (aggregated 
data from legal entities within a jurisdiction) 
and has both a quantitative and a qualitative 
component. The quantitative information is based 
on year-end 2019; the qualitative information 
represents the situation as of March 2021. The 
analysis focuses solely on the insurance sector 
investments in the general account (GA); unit-
linked or separate accounts are excluded.
The data collection outcomes in this report should 
be interpreted with some caution, since this is 
the first time data was collected at the global 
level to assess climate-related risks in insurance 
investment portfolios and given the best effort 
nature of the data collection. At the same time, a 
specific data dictionary was developed to ensure 
the consistency of data as much as possible, 
including across regions.
A total of 32 IAIS Members, representing around 
75% of the global insurance market in terms of 
gross written premiums, provided data. They are 
highlighted in green on the following world map.
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A few jurisdictions shared qualitative information 
only. While the quantitative information was directly 
available in some jurisdictions, other Members had 
difficulties in collecting this information if relying 
solely on existing supervisory reporting. As such, a 
few Members relied on an ad-hoc data collection 
among a subset within their insurance sector to 
provide the requested information.
There is also good coverage in terms of the 
insurance sector’s asset mix (see Graph 3). For 
most jurisdictions, the total insurance sector was 
covered – with some exceptions as denoted with 
the striped grey bars in the graph. On average, the 
five asset classes under analysis account for more 
than half of reported total assets, with relatively 
better coverage in Europe, South Africa and Latin 
America. Assets not covered include items such 
Source: IAIS data collections

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