The International Association of Insurance Supervisors (IAIS) has emphasised the importance of continuing a climate-centric approach.
This stance was made clear in a correspondence addressed to the International Sustainability Standards Board (ISSB) regarding the latter’s anticipated agenda priorities for the years 2024 to 2025.
Highlighting the critical nature of their viewpoint, the IAIS stated, “ensuring effective implementation of the climate standard is more important than moving into new areas”. This suggests a firm belief in the establishment and effectiveness of current climate standards over potential diversification of priorities.
Moreover, the IAIS pointed out that to provide a comprehensive perspective on climate disclosures across varying jurisdictions, the ISSB needs to contemplate on further required actions. This perspective is critical, as it would equip insurers with vital data from their business counterparts, enabling them to manage climate-induced risks efficiently.
The letter further elucidated on the broader picture of climate standards. IAIS believes that for a consistent and top-notch implementation of these standards across the economy, insurers should have unobstructed access to essential data. This data would be pivotal in assisting them to strategise and respond to climatic risks posed by their counterparts.
In addition to the climate emphasis, the IAIS also touched upon the subject of biodiversity. They recommended that the ISSB consider concentrating on a forthcoming research initiative that delves into biodiversity. This suggestion is founded on prior works spearheaded by both the Taskforce on Nature-related Financial Disclosures and the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services.
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