b'TABLE OF CONTENTSin the insurance sector). Regulations are movingenergy, green manufacturing and green transport from voluntary to mandatory disclosure, and frometc., and to explore various products such as best practices to enhanced licensing andclimate bonds and green insurance.governance requirements, particularly for theThere are also a myriad of risks and associated financial services industry including insurers. challenges for insurers in Asia. Many of these risks For example, in late 2020, the Monetary Authority ofare around the E in ESG. There is a growing voice Singapore released environmental risk guidelinesof NGO communities in Asia (and elsewhere) and for insurers with a particular focus on climate risk.international accords around climate risk, and an Those guidelines address disclosures as well as theincrease (both in number and severity) in extreme integration of environmental factors into riskweather events. It is against this changing risk management, underwriting and investmentprofile for climate-related natural disasters that processes. In 2021, Chinas State Council indicatedinsurers are required to write premiums.it was improving the regulatory framework to helpFrom an underwriting perspective, a failure of speed up the countrys low-carbon developmentAsian-based insurers to integrate a range ofESG and bolster its green finance industry, establishingfactors into their risk assessment and underwriting green finance statistical monitoring and evaluationprocess could adversely impact the risk profile of systems, and developing standards for disclosure sothe underlying risks in a policy. The considerations that insurers and other firms can better assess theirdo not just relate to the direct and obvious costs of carbon impact and improve their risk management.weather-related disruptions, but also other non-In addition, the China Banking and Insuranceclimate related risks that can disrupt supply chains Regulatory Commission has encouraged financialand otherwise have a severe impact on the institutions (including insurers) to ramp up financialoperations of a wide range of businesses.support for relevant sectors including renewable MAYER BROWN |175'