The International Association of Insurance Supervisors (IAIS) has published a comprehensive Application Paper to help supervisors integrate climate-related risks into insurance supervisory practices and opened a public consultation on a draft Issues Paper examining structural shifts in the life insurance sector. The newsletter also outlines IAIS work to strengthen implementation support and implementation assessment of its standards, including macroprudential and group-wide supervision. The climate Application Paper builds on December 2024 updates to the Insurance Core Principles (ICPs) and covers supervisory approaches spanning governance, risk management and internal controls, valuation and investment practices, reporting and disclosure, macroprudential supervision, group issues, scenario analysis and market conduct. To support analysis of natural catastrophe exposures, IAIS members can access a free CLIMADA-based tool that estimates NatCat damages at different return periods and average annual loss across more than 250 territories, with climate-change impact estimates for 2030, 2050 and 2080 under Representative Concentration Pathways 8.5 and unchanged exposure. On implementation assessment, the Member Review Panel phase has been reached for the Member Assessment Programme on 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 TJAs so far indicating generally strong macroprudential implementation across major markets. IAIS also updated its ICP and ComFrame online tool to reflect the December 2024 targeted amendments addressing climate risk, Holistic Framework recovery and resolution standards, and valuation and capital changes linked to adoption of the Insurance Capital Standard (ICS). Comments on the draft Issues Paper on structural shifts in life insurance, focusing on increased allocations to alternative assets and rising cross-border asset-intensive reinsurance, are invited by 2 June at 24:00 CEST. For ICS implementation assessment, IAIS plans a self-assessment exercise in 2026, with outcomes intended to inform a sequenced approach to more intensive ComFrame and ICS assessments from 2027.

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