The Swedish Financial Supervisory Authority (FI) has published an analysis of how a selection of non-life insurers incorporated sustainability risks in their 2023 Own Risk and Solvency Assessments (ORSA), finding that firms will need to improve their reporting on climate change risks ahead of new Swedish legal requirements taking effect in January 2027. While all reviewed insurers included some analysis of sustainability risks, FI found wide variation in depth and noted particular weaknesses in materiality assessments. Under the forthcoming rules, insurers will need to explain how they are exposed to climate change risks, but many ORSA reports provided only very limited descriptions of these assessments, and in some cases none at all. FI also identified shortcomings in scenario analysis, with many firms not including long-term scenarios showing how sustainability risks could affect their business model over time. FI intends to follow up compliance with the amended Solvency II requirements through ongoing supervision once the changes have been implemented in Swedish law, and highlighted climate- and transition-related risk management as a supervisory focus area for 2025.

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