The Slovenia Insurance Supervision Agency published a briefing on its participation in the May 2025 seminar “Supervision of sustainability risks in an uncertain and changing environment”, focusing on how climate change and environmental degradation can create physical and transition risks for the real economy and the financial system. The note frames impacts as both direct, such as reduced profitability or lower asset values, and indirect through macro-financial changes, and points to the need for an integrated approach to managing and supervising sustainability risks. The seminar brought together representatives from the European Insurance and Occupational Pensions Authority, other national regulators, insurers and a pension fund. The Agency highlighted discussions on the insurance industry’s challenges in shifting to more sustainable business models and supervisors’ practical issues in climate-related oversight, including a case study on the October 2024 floods in Valencia and eastern Spain, where insurers and Spain’s Consorcio de Compensación de Seguros processed more than 240,000 claims, paid 90% of claims within six months, and expected insured losses to exceed EUR 4.5bn, largely settled through the public Consorcio scheme, with experts noting the potential need for higher premiums to maintain adequate reserves.

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