Asset Pools : Insurance

The insurance business model is built on the principle of mutualisation of risk – making it a particularly effective tool for the management of collective sustainable development challenges. As investors, insurers aim to match liabilities with stable, long-term investment returns. Key policy packages are:
  • 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.

Inquiry Publications

  • China Report: A Systemic View of the Insurance Industry and Sustainable Development

    Date: 06-Oct-2015

    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

  • China Green Finance Task Force Report: Green Investor Networks

    Date: 02-Apr-2015

    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

  • China Green Finance Task Force Report: Green Insurance

    Date: 02-Apr-2015

    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

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