General Insurance Article - Insurers views on sustainability risks in Solvency II


Insurance Europe has published its views on the integration of sustainability risks in Solvency II. Europe’s insurers support the EU’s ambitious sustainability agenda and are committed to continue to contribute — and to build upon their current actions — towards the transition to a more sustainable society and to play their role in achieving the targets of the EU Green Deal.

 Sustainability is a key element of the Solvency II review and insurers are supportive of changes that can help to clarify how sustainability risks, including climate-change risks, are appropriately integrated into the Solvency II framework, insofar as this is not already the case.

 Although requirements for insurers to integrate sustainability risks into their investment, underwriting and reserving are already a part of Solvency II, the industry acknowledges the benefit of adding some further clarifications.

 The industry, therefore, supports the Commission’s sustainability related proposals that are risk-based, such as:
 • Regular reviews, and updates where necessary, of the scope and calibration of standard formula parameters pertaining to climate-related natural catastrophe risk.
 • The inclusion of climate change scenario analysis in the ORSA.
 • EIOPA’s mandate to investigate whether a differential prudential treatment for green/brown assets, as well as assets with a social objective, is justified based on evidence of risk differentials.
  
 In addition, the industry supports transition plans, which a very wide range of companies, including insurers, will need to set up and disclose, as currently (being) foreseen in the cross-sectoral directives of the Directive on Corporate Sustainability Due Diligence and the Corporate Sustainability Reporting Directive. Therefore, to avoid unnecessary duplication and inconsistencies, there is no need to include transition plans in sector specific legislation, such as Solvency II.

  

  

  

Back to Index


Similar News to this Story

Cyber Insurance is next big product for commercial brokers
UK brokers believe that cyber insurance is the new or emerging commercial insurance product with the most growth potential. Significantly low cyber in
Davies names Richard Barke as CEO of Insurance Solutions
Davies, the leading specialist professional services and technology firm serving insurance and highly regulated markets, has announced the promotion o
Incident response planning is a key cybersecurity control
Despite being focused on post-breach activities, cyber incident response planning has emerged as a key cybersecurity control in reducing an organizati

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.