Following a public consultation, the European Insurance and Occupational Pensions Authority (EIOPA) published on Tuesday 2 August an application guide on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).
The implementation guide provides a detailed and practical basis on how to implement the ambitions of sustainable finance in practice. With the help of mock companies, EIOPA illustrated examples of how to conduct materiality assessments and scenario analyses. It believes that a number of issues need to be considered, such as granularity, availability of tools and the use of pre-defined or own parameters.
These concrete case studies can help to reduce implementation costs for insurance companies, especially small and medium-sized ones.
As the (re)insurance industry will be affected by the physical and transitional risks of climate change, EIOPA wishes to encourage forward-looking management of these risks to ensure the solvency and viability of the industry.
For more information: https://aeur.eu/f/2sr (Original version in French by Anne Damiani)