1. SUSTAINABLE INSURANCE:
Climate Change and Financial Reporting by Insurers
nick robins, Co-director, UNEP Inquiry
IAIS Global Seminar, windsor, 30 June 2017

2. SUSTAINABLE INSURANCE
Sustainability factors – notably climate change – are increasingly material for insurance firms and supervisors are starting to respond
The Sustainable Insurance Forum is the new platform for supervisors to share experience and work together
Climate risk and disclosure has emerged as a priority theme
The FSB’s Task Force on Climate-related Financial Disclosures (TCFD) provides a market-based framework
Supervisors have a role to play to promote high-quality disclosure

3. SUSTAINABLE INSURANCE
Sustainable Insurance: A strategic approach to ensure that activities across insurance value chain are conducted in responsible and forward-looking way
Achieved by: identifying, assessing, managing and monitoring the risks and opportunities associated with environmental, social and governance issues
Supervisory Relevance: safety & soundness in the transition to sustainability
MARKET ACTION
POLICY LEADERSHIP
UN-PSI
INQUIRY
The four principles: Global sustainability framework for insurance industry
100 organizations: major global insurers, supporting institutions
> 20% of world premium volume, US$14 trillion in assets under management
Several insurance supervisors have signed the principles in support
Global research and policy initiative for sustainable financial systems
Supporting collaboration at national and international levels (i.e. G20)
Special focus on role of insurance in promoting sustainable development
2016: ‘FROM MOMENTUM TO TRANSFORMATION’

4. INSURANCE SUPERVISORS ARE TAKING ACTION
FRANCE: Requirements for investors (including insurers) to disclose information on climate risks & alignment with energy transition goals
UK: Assessment of the impacts of climate change on the UK insurance sector, now advancing a bank-wide strategy on climate and green finance
NETHERLANDS: Survey of carbon asset exposures to support assessment of energy transition risks; integrating climate factors into stress testing
CALIFORNIA: Mandatory requirements for insurance companies’ disclosure of investments in fossil fuel enterprises (coal, oil, gas and utilities)
MOROCCO: Implementing a National Roadmap for Sustainable Finance including the insurance sector, considering climate factors
BRAZIL: 2016 survey of insurance firms to understand the management and strategic perception of environmental issues, including climate change

5. THE SUSTAINABLE INSURANCE FORUM
Global network of insurance supervisors and regulators working together to strengthen their response to sustainability challenges
Objective: platform for international collaboration among supervisors, facilitating knowledge sharing, research, and uptake of policy innovations
Launch: December 2016, San Francisco, USA – Brazil, California, France, Ghana, Jamaica, Morocco, Netherlands, Singapore, the UK, and IAIS
Six-track work programme:
Disclosure
Access & Affordability
Sustainable Insurance Roadmaps
Climate Risks to Investments
Disaster Risk Reduction
Capacity Building for Supervisors

6. FINANCIAL STABILITY BOARD’S TASK FORCE: AN INDUSTRY-LED REPORTING FRAMEWORK
Source: FSB TCFD, 2017

7. SUPERVISORS & CLIMATE DISCLOSURE
February 2017: SIF joint response to the FSB TCFD report consultation draft
Motivation: Role of supervisors to ensure safety and soundness of firms and markets, including through market discipline
Supporting uptake of TCFD recommendations
Promoting awareness of the recommendations among regulated firms
Building capacity & sharing tools for scenarios and metrics
Incorporating climate disclosures into supervisory activities
Integrating climate disclosure into Sustainable Insurance Roadmaps
Endorsing the recommendations, considering mandates and objectives

8. SUSTAINABLE INSURANCE FORUM - NEXT STEPS
2ND SIF Meeting: July 1st, UK
Special focus on Climate Risks to Investments and Reserves: Sharing knowledge and lessons from current practice
Response to FSB TCFD Final Recommendations
Forthcoming paper: “Sustainable Insurance: The Emerging Agenda for Supervisors and Regulators”
3rd SIF Meeting: alongside IAIS Annual Meeting, Kuala Lumpur
Delivering Practical Outputs: Best practice guidance on risk assessment, design of sustainable insurance roadmaps, as well as capacity building for supervisors.

9. CONTACT AND INFORMATION
@fininquiry
NB: PRESENTER TO PERSONALISE THIS SLIDE
Nick Robins, Co-Director
Jeremy McDaniels, Programme Manager
Mahenau Agha, Head of Outreach