Policymakers are recognizing that reforms within the financial system as a whole can be helpful to effectively mobilize private capital to respond to sustainability challenges. The insurance sector is responding to sustainability challenges with strategic action across both underwriting and investment, including through the UN-backed Principles for Sustainable Insurance (PSI). A growing number of insurance supervisors and regulators are beginning to incorporate sustainability into the way they oversee the sector. Key sustainability factors are now recognized as potentially significant for the success, safety and soundness of the insurance sector – inspiring reactions by supervisors and regulators.
This report discusses the measures and reforms being taken by the industry sector towards managing their sustainability-related risks. This report also aims to strengthen insurance supervisors’ and regulators’ understanding of and responses to sustainability challenges for the business of insurance.