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 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

  • Insurance 2030

    Date: 01-Jun-2015

    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

  • 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

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