SIF Implementation of TCFD Recommendations by Insurance Supervisors and Regulators

The UNDP Sustainable Insurance Forum (SIF) has published a paper outlining supervisory and regulatory practices in implementing the Taskforce for Climate-related Financial Disclosures (TCFD) recommendations. This paper builds upon the SIF’s recognition of the TCFD recommendations as the preeminent disclosure framework for climate-related risks.

The paper highlights the improvements in the quantity, quality and comparability of climate-related disclosures observed through the implementation of the TCFD recommendations.

The SIF paper condenses the learnings from the current practices of SIF members in implementing the TCFD recommendations in their own jurisdictions, including using the information available in supervisory activities. Case studies from SIF members provide more detailed insights into the ways in which supervisors and regulators are encouraging voluntary TCFD-aligned disclosures and mandating requirements for such disclosures.

SIF Scoping Study: Nature-related Risks in the Global Insurance Sector

The UNDP Sustainable Insurance Forum (SIF) has published the ‘SIF Scoping Study: Nature-related Risks in the Global Insurance Sector’. This study marks a pioneering effort to explore and understand the global insurance sector’s dependence on nature, what nature-related risks could be, and whether and how nature-related risks are financially material to the sector’s underwriting and investing business.  

The SIF members and partners; experts and industry participants have contributed to this scoping study. The study has employed a mixed research methodology and a survey of 108 insurance sector participants from 32 countries, 57 percent of whom were insurers and reinsurers, 10 percent insurance industry associations and 5 percent insurance brokers. It seeks to gauge the financial risks of nature-related loss and assess how insurance supervisors and insurance companies are responding to these risks.

Funded by the Executive Office of the Secretary-General of the United Nations and Sustainable Finance Ireland, this report has been commissioned by the SIF Secretariat, and authored by Prajwal Baral.



SIF/IAIS Application Paper on the Supervision of Climate-Related Risks in the Insurance Sector

The United Nations-convened Sustainable Insurance Forum (SIF) in partnership with the International Association of Insurance Supervisors (IAIS), has published the Application Paper on the Supervision of Climate-related Risks in the Insurance Sector. The Paper provides insurance supervisors with concrete tools to further strengthen their efforts in assessing and addressing risks from climate change. It also sets out recommendations and examples of good practice consistent with the IAIS Insurance Core Principles (ICPs).

The following topics are in scope of the Paper:

  • Supervisory Review and Reporting
  • Corporate Governance
  • Risk Management, including scenario analysis and stress testing
  • Investments
  • Disclosures.

The publication of the Application Paper follows a 90-day consultation period during wich 25 stakeholders and members gave valuable input resulting in various improvements to the draft Paper. The outcome of the consultation can be accessed here.

Interested stakeholders are invited to a webinar providing more background on the Paper and a question and answer session on 9 June, from 13.00 – 14.00 CEST. More information and a registration link can be found here.

Banque de questions sur le risque lié aux changements climatiques à l’intention du secteur de l’assurance du SIF

Le Bureau du surintendant des institutions financières (BSIF), membre du Sustainable Insurance Forum (SIF)/Forum d’assurance pour la durabilité, a produit la version française de la Banque de questions sur le risque lié aux changements climatiques à l’intention du secteur de l’assurance du SIF et l’a utilisée dans sa formation. La présente banque de questions vise à aider les autorités de surveillance à mettre au point des outils de mobilisation afin de mieux comprendre les expositions et les réactions stratégiques des entités réglementées au risque et aux possibilités liés aux changements climatiques. Il s’agit d’un un cadre, ainsi que d’exemples de questions, que les autorités de surveillance peuvent adapter en fonction du contexte, des objectifs, des domaines d’intérêt et du degré de sophistication du marché local à l’égard des enjeux liés aux changements climatiques.

The Office of the Superintendent of Financial Institutions (OSFI), member of the Sustainable Insurance Forum (SIF), has produced the French version of the SIF Question Bank on Climate Change Risks to the Insurance Sector and used it in their training. This Question Bank is intended to help supervisors develop engagement tools to better understand exposures and strategic responses of regulated entities to climate change risks and opportunities. The objective is to provide a framework, and example questions, which supervisors can adapt for use in their own jurisdictions – depending on local market contexts, objectives, areas of interest, and levels of sophistication with climate change issues.

Dossier on Green Finance

The topic of sustainability also concerns the Swiss financial centre and the financial institutions. Green finance focuses on how the business world is dealing with climate change. This page provides key information published by FINMA on this topic.

Indebted to Nature

The financial sector is exposed to risks as a result of biodiversity loss. This emerged from a joint study by De Nederlandsche Bank (DNB) and PBL Netherlands Environmental Assessment Agency. The new study builds on the report Values at risk?, published last year by DNB, in which risks of biodiversity loss were investigated in qualitative terms.