Asset Pools : Insurance
- Closing the protection gap for effective insurance protection against natural hazards. Tailored mixes of fiscal support, policy directed provision and purchase are needed along with regulatory concessions and market development.
- Calibrate prudential governance to better reflect long-term economic and environmental realities. Consider whether solvency rules are dampening investment in the long-term assets required for sustainable development. A tradable asset class is needed to enable insurers and other investors to easily access sustainable infrastructure investments. Regulators should explore how to explicitly integrate long-term risk factors such as climate change into prudential reviews.
- Bridging the sustainability frameworks for underwriting and investment. Sustainability should be incorporated into the implementation of the international Insurance Core Principles. Key to the success would be a leadership group of supervisors at the national level working closely with the IAIS and the Access to Insurance Initiative.
Sustainable development risks and opportunities including natural disasters, access to insurance, climate change and the low-carbon transition, aging populations and long-term investment are high on the agenda for insurance. This working paper has been developed through a consultation involving more than 30 respondents from insurance companies, regulators and stakeholders in over 20 countries, bolstered by engagements held in
This paper explores whether the extent to which Regulation 28, CRISA and JSE Integrated Reporting Standards (referred to as governance policy innovations) have influenced the level of investment that integrates Environmental, Social and Governance (ESG) in its decision making process. It finds that while governance innovations have increased actors’ awareness about interrelationship between ESG factors and financial performance it
The US financial system is undoubtedly among the largest, most innovative and most sophisticated in the world. It is also clear that this is both a benefit and an impediment to non-governmental investment in sustainability and inclusiveness. To date, the actual investment in infrastructure and sustainability does not meet current needs, especially those related to maintaining
The contribution of the insurance industry to sustainable development relates to its three roles as a financial loss “shock absorber” in reducing real risks to assets, in safety and health, and as a significant investor in the real economy. Particular areas where the insurance industry is responding to sustainable development challenges are in relation to
The report, a companion to the second edition of “The Financial System We Need”, examines how the international financial standards currently relate to the goals of sustainable development and explores opportunities for better alignment as a way to promote greater stability, resilience and fairness to the financial system. The key messages are: Financial standards have
An efficient and resilient regulatory regime must not only deal competently with the financial system that exists currently; it must also have adaptive capacity to deal competently with the system that is emerging. This working paper examines disruptive innovations and their implications for the design of a green and inclusive financial system. It identifes five trends relevant
The rapid and continuous increase of environmental incidents in China in recent years has led to severe impacts on its sustainable social and economic development and public health. This paper sets out the case for green insurance as a market-based risk management mechanism which could play a proactive role in preventing and transferring environmental pollution risks and
This paper set out the case for financial institutes and associations in China to establish a green investor network, to monitor investees’ performance of their environmental obligations, foster green investment capabilities, and hold educational programs. Internationally, green investor networks such as the UNEP Finance Initiative and the UN Principles for Responsible Investment have played a
Key sustainability factors are now recognized as potentially significant for the success, safety and soundness of the insurance sector – inspiring reactions by supervisors and regulators. In its role as risk manager, risk carrier and investor, the global insurance sector plays a cornerstone role in the management of sustainability-related risks and opportunities. The risk transfer
This paper provides an outline of South Africa’s financial sector, the environmental and social issues it faces, the response of government and financial regulators and the extent to which has resulted in measurable sustainable investment flows. In South Africa environmental, social and governance (ESG) considerations appear on the agenda of strategic discussions and are part of the
- Regulatory Approaches to Inclusive Insurance Market Development: Cross-country Synthesis Paper 2
Access to Insurance Initiative (2014).
- Responding to Climate Change — The Insurance Industry Perspective
Mills, E. (2007). In Climate Action, Sustainable Development International (in partnership with the United Nations Environment Programme).
- Integrating Risks into the Financial System: The 1-in-100 Initiative Action Statement
The 1 in 100 Initiative (2014).
- Insurer Climate Risk Disclosure Survey
Leurig, S & Dlugolecki, A. (2013). Boston: CERES.