The International Association of Insurance Supervisors (IAIS) published an Application Paper setting out good practices for supervisors to integrate climate-related risks into insurance supervisory frameworks, and outlined parallel work to strengthen implementation and assessment of IAIS standards. The newsletter also highlights a live public consultation on a draft Issues Paper examining structural shifts in the life insurance sector. The climate paper builds on December 2024 updates to the Insurance Core Principles (ICPs) that clarified the need to integrate climate-related risks into supervision, and covers supervisory approaches spanning governance, risk management and internal controls, valuation and investments, reporting and disclosure, macroprudential supervision, group issues, scenario analysis, and market conduct considerations. To support natural catastrophe risk assessment, IAIS has made available to members a free tool developed by CLIMADA Technologies, using an open-source global NatCat model to estimate damages at different return periods and average annual loss across more than 250 territories, with projections for 2030, 2050 and 2080 under Representative Concentration Pathways 8.5 on an unchanged-exposure basis. On implementation assessment, the IAIS reached the Member Review Panel phase for the Member Assessment Programme review of the Sultanate of Oman and for the second round of Targeted Jurisdictional Assessments of Holistic Framework supervisory material across Australia, Bermuda, Italy, Singapore, Spain and South Africa, with the TJA work to date pointing to generally strong implementation of macroprudential supervisory standards. The IAIS also updated its ICP and Common Framework for the Supervision of Internationally Active Insurance Groups online tool to reflect the December 2024 targeted amendments, including changes to the ICP Introduction and ICPs 9, 12, 14, 15, 16, 17 and 25 across climate risk, Holistic Framework recovery and resolution standards, and valuation and capital matters linked to the adoption of the Insurance Capital Standard. Comments on the draft Issues Paper on structural shifts in life insurance, focused on increased allocation to alternative assets and rising cross-border asset-intensive reinsurance, are invited by 2 June at 24:00 CEST. The IAIS also signalled plans to launch an Insurance Capital Standard self-assessment exercise in 2026, with an aim for outcomes to inform a sequenced approach to more intensive assessments of ComFrame and the ICS by 2027.

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