Consultation response
In its response to the IAIS public consultation on guidance and supporting material to Insurance Core Principles 7, 8, 14, 15 and 16, Finance Watch applauds important steps being taken by the IAIS, such as recognising the importance of a double materiality perspective and consideration of long time horizons in climate risk management.
The IAIS has published a public consultation on the reviewed guidance material to Insurance Core Principles 15 regarding Investments and 16 regarding Enterprise Risk Management. It further consulted on supporting material for ICPs 7, 8, 14, 15 and 16. This consultation is the third instalment of a set of consultations regarding climate risk supervisory guidance. In earlier consultation responses, Finance Watch urged the IAIS to ensure their guidance evolves with the current time and deals with the challenge of climate change.
Finance Watch applauds important steps being taken by the IAIS, such as recognising the importance of a double materiality perspective and consideration of long time horizons in climate risk management for insurance investment activities.
We urge the IAIS to further consider the limitations of climate scenario analysis as a prudential tool and the need to improve the underlying models in the coming years.
