IAIS Responds to ISSB Exposure Draft on Climate Disclosures
The International Association of Insurance Supervisors (IAIS) published its response to the exposure draft of the International Sustainability Standards Board (ISSB) on the climate-related financial disclosures (IFRS S2).
In its response, IAIS welcomes the ISSB’s draft global standard on climate-related financial disclosures and notes the importance of a globally consistent baseline climate reporting standard for insurers, both as users and preparers of climate-related disclosures. IAIS notes that the proposed creation of a Sustainability Standards Advisory Forum and a working group to consider the compatibility of the ISSB’s standards with other standard-setting activity (for example, the U.S. Securities and Exchange Commission (SEC) and the European Financial Reporting Advisory Group (EFRAG)) in the climate-related reporting and disclosures space, will significantly reduce the burden on preparers, bring greater alignment, and make disclosures more comparable. IAIS stands in favor of timely implementation of the new standard, with an aim for insurers to continue to improve the level and quality of disclosure in the clear direction as set by the new ISSB standard.
IAIS invites ISSB to consider the specific characteristics of the insurance industry as investors and underwriters of other industries. IAIS notes that increased disclosure by companies, in which insurers invest and underwrite, will be necessary to support insurers in making public disclosures of sufficient quality and detail. IAIS will continue to closely monitor progress made by the ISSB and will review the IAIS’ own standards for supervisory disclosure requirements to assess whether there are any additional revisions needed to the IAIS materials. In terms of supervisory reporting, IAIS found that ISSB disclosures are relevant as they may provide additional information in the public domain to assess risks in the global insurance sector.
Keywords: International, Banking, Insurance, ESG, Disclosures, Climate Change Risk, Exposure Draft, Supervisory Reporting, EFRAG, SEC, ISSB, IFRS, IAIS
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Michael Denton, PhD, PE
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
Previous Article
EIOPA Publishes Guidance on Climate Change Scenarios in ORSARelated Articles
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.
