The International Association of Insurance Supervisors (IAIS) says that it will publish a report by the end of 2023 which analyses the various types of initiatives undertaken by insurance supervisors to address natural catastrophe protection gaps.
The report will draw from examples and insights from IAIS members, the insurance industry, international organizations and other stakeholders to distill the key elements of current good practices. This work can contribute to discussions at other international fora, such as the G7.
Insurance supervisors have a mandate to protect policyholders, promote the maintenance of fair, safe and stable insurance markets and contribute to financial stability, says the IAIS.
Within the various mandates, supervisors can play an essential role in supporting disaster risk assessment and risk management practices.
Examples of initiatives underway in IAIS member jurisdictions include:
• Supporting availability of risk analytics and data to assess disaster risks and insurance protection gaps;
• Providing incentives or implementing regulation to encourage risk prevention measures and actions to improve financial literacy and risk awareness; and
• Contributing to the design and/or implementation of public-private initiatives aimed at addressing natural catastrophe insurance protection gaps.
Support for actions by regulators to deal with protection gaps
The IAIS says it is committed to further supporting insurance supervisors’ actions to address protection gaps.
The IAIS will facilitate information exchange at the global level and seek opportunities for collaboration with partners. In 2023, the IAIS will engage with its global membership and Public stakeholders on this important topic, including at its milestone events.
To address this critical challenge, in developing options for future work, the IAIS will seek opportunities to engage with existing initiatives like the Global Shield against Climate Risks and collaborate with other international partners, such as the Access to Insurance Initiative (A2ii), Insurance Development Forum, Organization for Economic Cooperation and Development and World Bank with expertise in protection gaps and disaster risk financing.