Leading insurers from across the globe—representing over 10% of world premium volume and USD 6 trillion in assets—and the UN Environment Programme (UNEP) have released a progress update on a pioneering initiative to enhance the insurance industry’s assessment of climate change futures. This progress update serves as a prelude for the final report to be published by the end of the year.
Over the past eight months, 22 insurers have been working together under the auspices of UNEP’s Principles for Sustainable Insurance Initiative (PSI)—the largest collaboration between the UN and the insurance industry—to explore and pilot methodologies that insurers can use towards implementing the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosure (TCFD).
The overall aim of the pilot project is to contribute to the development of consistent and transparent analytical approaches that can be used to identify, assess and disclose climate change-related risks and opportunities in insurance portfolios in a forward-looking, scenario-based manner. Climate change risk assessment based on forward-looking information and climate change scenarios is a central component of the TCFD recommendations, and is arguably the most challenging to implement.
The pilot project assesses climate-related physical, transition and litigation risks in the context of insurance portfolios. In the financial sector, this insurance project represents a pioneering initiative that assesses these climate-related risks in one major study.
The 22 insurers participating in the project are listed below together with their respective countries of domicile:
Allianz (Germany), Aviva (UK), AXA (France), Desjardins (Canada), Generali (Italy), IAG (Australia), ICEA LION Group (Kenya), Intact (Canada), MAPFRE (Spain), MS&AD (Japan), Länsförsäkringar (Sweden), Lloyds Banking Group (UK), Sompo Japan (Japan), Munich Re (Germany), NN (The Netherlands), QBE (Australia), Storebrand (Norway), Swiss Re (Switzlerand), TD Insurance (Canada), The Co-operators (Canada), Tokio Marine (Japan), and Zurich (Switzerland).
The key findings reflected in the progress update, Using hindsight and foresight: Enhancing the insurance industry’s assessment of climate change futures, will be presented in a PSI global webinar next week.
On 17 September, two webinars will be held to cater to different time zones:
1st webinar: 9:00 to 10:30 am Central European Summer Time
2nd webinar: 3:00 to 4:30 pm Central European Summer Time
For more information, please contact the following at UNEP’s Finance Initiative: