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 ArticleACPR on Assessment of Reputation of Board Members of Insurance Firms
The European Commission (EC) published a report summarizing responses to the targeted consultation on the supervisory convergence and the single rulebook in the European Union (EU).
The Office of the Superintendent of Financial Institutions (OSFI) published an update on the discussion paper that intended to engage federally regulated financial institutions and other interested stakeholders in a dialog with OSFI, to proactively enhance and align assurance expectations over key regulatory returns.
The European Central Bank (ECB) published its opinion on a proposal for a regulation on European green bonds, following a request from the European Parliament.
The Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB) published a report that explores the expected impact of digitalization on provision of financial and banking services, and proposes policy measures to address the risks stemming from digitalization.
The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice.
The Swedish Financial Supervisory Authority (FI) announced that the capital adequacy reporting as at December 31, 2021 must be done by February 11, 2022.
The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.