A critical challenge: climate change represents a major challenge for insurers, driven by the increasing frequency of natural disasters and the need to manage risks associated with the transition to a low-carbon economy.
Key takeaways
Regulatory initiatives:
- Solvency 2 revision: climate risks are gradually being integrated into the Solvency 2 prudential framework for insurers
- Climate stress tests: These are proving useful in assessing insurers’ resilience to both physical and transition risks.
Implications for European insurers:
- the latest EIOPA recommendations are expected to have limited impact on the solvency of European insurers
- however, stress tests reveal significant vulnerabilities, including investment portfolio devaluation, rising climate-related claims, and declining solvency ratios.
Strategic levers for insurers: engaging with companies and reallocating asset portfolios using innovative indicators and tools.
You can now read the full whitepaper at the link below
