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

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Graph 3:
Composition of assets (general accounts only)
Source: IAIS data collections
7%
21%
6%
21%
2%
37%
6%
0%
25%
50%
75%
100%
Asia & Oceania
Europe & ZA
Latin America
North America
TCDC Sample
Equity
Corporate bonds
Loans / mortgages
Sovereign bonds
Real estate exposure
Other assets (out of scope)
Other (not captured by submissions)
as reinsurance recoverables, deferred tax assets, 
cash and securitisations. 
3.4 QUANTITATIVE FINDINGS ON CLIMATE 
RELEVANT EXPOSURES
One of the main objectives of this report is to 
determine the proportions of different types of 
climate-relevant assets held by the insurance 
sector. The exposures presented in this section 
are based on the data collected, complemented 
when necessary by other data and/or 
assumptions, as specified in the corresponding 
subsections. Those exposures inform the scenario 
analysis developed in Section 4.
Graph 4 presents the asset mix for the full TCDC 
sample, as well as the asset mix by region. The 
overall mix by asset class is complemented by a 
split of equity, corporate bonds, and loans and 
mortgages in climate-relevant sectors, providing 
a comprehensive overview of the asset mix by 
region.
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Subsections 3.4.1 to 3.4.3 provide a more 
detailed view of each asset class separately, as 
well as the relevant assumptions made. Since 
these assumptions have a direct impact on the 
overall results presented in Graph 4, that graph 
should be considered in conjunction with the 
figures and explanations provided thereafter.
3.4.1 Equity, corporate bonds, and loans and
 mortgages
3.4.1.1 Mapping to climate-relevant sectors
Consistency of reported data
The mapping used to identify climate-relevant assets 
is quite dependent on the region of the respondent. 
In particular, almost all respondents from Europe 
and South Africa used the mapping based on NACE 
codes,
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except for two respondents using a mix of 
standards or their own jurisdictional classification. 
Most respondents used one of the three mappings 
provided by the IAIS for the purpose of collecting 
data.
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A few of them, however, referred to the 
Global Industry Classification Standard, or used 
either a combination of classifications or their own 
national classification.
The three mappings provided by the IAIS were 
developed with a view of cross-consistency for the 
identification of climate-relevant assets. Therefore, 
the use of any of those three mappings should 
not generate major discrepancies in the reporting. 
However, the use of other mappings could be a 
source of heterogeneity. As an illustration, one of 
the respondents using the Global Industry
Classification Standard provided details on the 
allocation of the standard’s codes to the six 
climate-relevant sectors. Those details show 
a limited alignment with the three mappings 

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