Members' Reports & Publications
Throughout history, individuals have come together to protect what they value and stabilise their futures by sharing risks through collective pools of resources. Modern risk-sharing systems include social protection, informal community networks and the insurance industry. Each has crucial roles that can be applied to the climate crisis. These systems together cover approximately one third of global GDP. However, their distribution is uneven and where they do exist, the response allocated to climate risks is minimal.
CISL’s new report, Risk Sharing in the Climate Emergency: Financial regulation for a resilient, net zero, just transition, launched in Glasgow on COP26 Finance Day, highlights five key areas of action for policymakers, private and public financial authorities and the finance sector, which if implemented will enable a radical global transformation to protect lives and livelihoods, now and in the decades ahead.
The report calls on key economic, policy, industry and advocacy actors to support a just, resilient net zero transition in the following ways:
- Policymakers – reinforce financial inclusion and sustainable development priorities within insurance regulators’ mandates to meet the climate objectives;
- Financial markets beyond insurance – accelerate consistent physical climate risk quantification through insurance experience, methods, metrics and resources;
- Public and private financial authorities – massively expand risk-sharing pools across financial systems to manage global-to-local and intergenerational climate risks;
- Insurance regulators and climate authorities – explore ways for UNFCCC and IAIS members to co-operate on shared climate risk objectives;
- Insurance sector – become pioneers of climate-related disclosures, prudential supervision and climate stewardship;
Academia and NGOs – research the role of the insurance system in managing the social risks of the net zero transition.
Date
6th June, 2022
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