Convened by UN Environment, the Sustainable Insurance Forum (SIF) provides a global platform for knowledge sharing, policy dialogue, international collaboration, and identification of best practices. The goal of the SIF is to strengthen insurance supervisors’ and regulators’ understanding of and responses to sustainability challenges for the business of insurance.
The SIF recently published its first report, Sustainable Insurance: The Emerging Agenda for Supervisors and Regulators, which lays out a five-step framework for action:
- Initial Assessment: Supervisors often start by assessing the materiality of sustainability issues for the insurance sector, and implications for core mandates, objectives and strategies.
- Deepening Risk Analysis: Supervisors may explore how environmental factors can be better evaluated and integrated into routine supervisory oversight at the firm level, as well as system-level stress testing.
- Improving Information: Supervisors may gather information form firms and promote enhanced disclosure through voluntary guidance, surveys, and implementation of mandatory requirements, as well as enhancing transparency for consumers.
- Market Transformation: Supervisors can support new insurance markets through product frameworks and partnership facilities, and encourage change in investment practice by building awareness, promoting green financial markets, and examining regulatory barriers.
- Making Systemic Linkages: Finally, supervisors may explore connections between insurance and other financial sectors, real economy policy frameworks, and wider sustainable finance processes.
Kind regards,The Inquiry Team
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