The Slovenia Insurance Supervision Agency published a summary of a 24–25 September Frankfurt expert meeting on sustainability risks and the use of climate scenarios in the own risk and solvency assessment (ORSA), noting that practices remain uneven across insurers and that smaller firms face more constraints when preparing climate-risk analyses. Climate change was framed as increasingly relevant to insurers through physical risks such as floods, heatwaves and other natural catastrophes, alongside transition impacts on investment portfolios and strategic decisions and growing legal and regulatory requirements for sustainability risk management. Participants identified ORSA as a key tool for assessing resilience to long-term climate impacts, with European Insurance and Occupational Pensions Authority (EIOPA) analysis cited showing climate risk coverage in ORSA rising from 13% of insurers in 2019 to over 85% now, while approaches still vary materially across firms and markets. A more harmonised European Union approach was presented as important for comparability, particularly for materiality assessments. Where climate risks are material, insurers should run scenario analyses covering short- and long-term horizons, with long-term analysis using two baselines, one assuming global warming is kept below 2°C and another assuming the threshold is exceeded. The meeting also highlighted data constraints, including limited availability of high-quality, standardised and cost-effective data, and compared supervisory approaches to overseeing climate-risk treatment. Discussions pointed to a future strengthening of EIOPA’s role as a data hub and centre of excellence to support further alignment of supervisory practices.
Slovenia Insurance Supervision Agency 2025-10-23
Slovenia Insurance Supervision Agency highlights uneven climate-risk integration in insurers’ ORSA despite EIOPA uptake rising above 85%
The Slovenia Insurance Supervision Agency summarized a Frankfurt expert meeting on sustainability risks and climate scenarios in the own risk and solvency assessment (ORSA), highlighting uneven practices among insurers and constraints faced by smaller firms. Climate change impacts, including physical risks and regulatory requirements, were discussed, with ORSA identified as crucial for resilience assessment. The meeting emphasized the need for a harmonized EU approach and improved data availability, with EIOPA's role potentially expanding to support alignment.