The International Association of Insurance Supervisors (IAIS) outlined its collaboration with the World Bank Group to support the G20 Sustainable Finance Working Group’s work on natural catastrophe (NatCat) insurance protection gaps, including an input paper and a G20 side event in Durban focused on emerging markets and developing economies. The IAIS also signalled further joint work with the World Bank and other international partners to develop practical guidance and tools for policymakers and supervisors. The G20 input paper frames NatCat protection gaps as a global issue and sets out foundational steps including improved assessment of NatCat exposures and gaps, risk-based and proportionate supervisory frameworks, stronger financial literacy and risk awareness, and incentives for risk reduction such as more resilient building codes and infrastructure. It also highlights insurance-based options including parametric insurance, microinsurance and risk-transfer mechanisms such as catastrophe bonds, reinsurance and regional risk pools, with public-private insurance programmes positioned as critical to scalable solutions; the Durban discussion prioritised collaboration, pre-disaster risk reduction and innovation, and highlighted the value of involving insurance supervisors in disaster-risk financing strategies. Separately, the IAIS noted several policy deliverables, including high-level principles to guide development of the Insurance Capital Standard (ICS) implementation assessment methodology, a final application paper on supervision of artificial intelligence, an application paper on fair treatment of a wide range of consumers, and a consultation on draft operational resilience objectives and toolkit running until 29 September. Next milestones include a 9 September virtual stakeholder event on the ICS high-level principles, the IAIS Annual Conference and Annual General Meeting in Tirana on 10–14 November with an Executive Committee chair handover scheduled for 12 November, and recruitment for the next IAIS Secretary General with applications due by 22 September and selection targeted for early 2026.
International Association of Insurance Supervisors 2025-09-02
International Association of Insurance Supervisors and World Bank Group set out G20 recommendations to close natural catastrophe insurance protection gaps
The International Association of Insurance Supervisors (IAIS) and the World Bank Group are addressing natural catastrophe insurance gaps in emerging markets. The initiative includes a G20 input paper and a Durban event on risk assessment and insurance solutions. IAIS announced policy deliverables like principles for Insurance Capital Standard implementation, AI supervision papers, and a consultation on operational resilience.