IAIS Publishes Issues Paper on Implementation of TCFD Recommendations
IAIS is seeking feedback on an issues paper on the implementation of recommendations of the Task Force on Climate-related Financial Disclosures (TCFD Recommendations). The paper provides an overview of practices that supervisors have considered in the development of climate-related disclosure requirements within their markets. Considering the diversity of supervisory frameworks across jurisdictions, the paper focuses on practices that can be implemented with limited direct regulatory intervention. The feedback period for this issues paper ends on February 05, 2020.
The FSB TCFD had developed recommendations for voluntary climate-related financial disclosures in 2017. Then, Sustainable Insurance Forum (SIF) and IAIS released a joint issues paper on climate-change risks to the insurance sector in June 2018. As a follow-up to the 2018 issues paper, and recognizing the important role of the TCFD Recommendations in establishing a framework for climate-risk-related disclosures for the insurance sector, SIF and IAIS agreed to develop this second issues paper. The draft issues paper draws on the results of a SIF Survey on implementation of the TCFD recommendations and guidance, which was conducted during the first half of 2019. The paper also benefited from stakeholder input received during a workshop that took place in September 2019.
The paper begins with an overview of the relevance of the TCFD Framework to insurance supervision. It then summarizes the results of different efforts to assess levels of TCFD awareness and implementation within the insurance sector, based on the SIF Survey, as well as other sources of publicly available information. Next, the paper sets out a range of options for supervisory approaches, based on case studies (Annex 1) describing supervisory practices in twelve jurisdictions. SIF and IAIS recognize the value of developing further materials to support supervisors in their efforts to assess climate risks, including in relation to the Insurance Core Principles (ICPs). This paper is a step toward this objective and, as a next step, SIF and IAIS will develop an application paper on climate risk in the insurance sector.
Comment Due Date: February 05, 2020
Keywords: International, Insurance, Climate Related Risks, TCFD, Climate-Related Disclosures, ICPs, Sustainable Insurance Forum, Sustainable Finance, ESG, IAIS
Previous Article
ACPR on Assessment of Reputation of Board Members of Insurance FirmsRelated Articles
EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
EP Reaches Agreement on Corporate Sustainability Reporting Directive
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
PRA Consults on Model Risk Management Principles for Banks
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
EC Regulation Amends Standards for Calculating Credit Risk Adjustments
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
BIS Hub Updates Work Program for 2022, Announces New Projects
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
EIOPA Consults on Review of Securitization Framework in Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
UK Authorities Issue Regulatory and Reporting Updates for Banks
The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.
BCBS Issues Climate Risk Principles while HKMA Expresses Its Support
The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.
