The International Association of Insurance Supervisors has published an FSI Insights note analysing climate-related protection gaps from a reinsurance perspective, focusing on how reinsurers’ pricing and underwriting practices can affect the affordability and availability of insurance coverage for natural catastrophe events. Drafted by staff from the IAIS, the Bank for International Settlements’ Financial Stability Institute and the Swiss Financial Market Supervisory Authority, the note examines the structure and dynamics of the reinsurance market and how reinsurance activity is responding to physical and transition risks as climate impacts increase. It also considers implications for the safety and soundness of insurers and reinsurers, reviews reinsurers’ approaches to climate risk adaptation and mitigation, and situates the analysis alongside prior IAIS and FSI work on NatCat protection gaps and potential insurability tipping points.
International Association of Insurance Supervisors 2025-03-31
International Association of Insurance Supervisors publishes FSI Insights note on climate-related protection gaps and reinsurance pricing
The International Association of Insurance Supervisors published an FSI Insights note analyzing climate-related protection gaps from a reinsurance perspective, focusing on pricing and underwriting practices affecting insurance affordability and availability for natural catastrophes. It examines reinsurance market dynamics, responses to climate risks, and implications for insurer safety and soundness, situating the analysis within prior IAIS and FSI work on natural catastrophe protection gaps.