The International Association of Insurance Supervisors (IAIS) has published an Application Paper setting out how supervisors can apply the existing Insurance Core Principles (ICPs) to address climate-related risks in the insurance sector. The paper is positioned as practical supervisory guidance and does not introduce new requirements. The Application Paper replaces the IAIS’s 2021 paper on climate-related risks and follows four rounds of consultation and broader engagement with members and stakeholders. It covers good practices on supervisors’ roles in assessing climate-related risks, integrating these risks into supervisory frameworks for governance, risk management and internal controls, implications for valuation and investment practices, supervisory reporting and public disclosure, macroprudential supervision, group supervisory issues, and the use of climate scenario analysis, including market conduct considerations. A public background session webinar on the Application Paper is scheduled for 28 April from 13:00 to 14:30 CEST.

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