b'INSURANCE REGULATORY|US/NAICWinds of ChangeDevelopments in Climate Change and Insurance Industry ResiliencyOver the past five years, the topic of climate changerisk assessment tool for insurers. In addition, the and insurance industry resiliency has beenIAIS created a Climate Risk Steering Group which increasingly prioritized as an item of concern byhas three workstreams: (1) the development of a gap both international and US insurance regulatoryanalysis of the IAIS global standards for insurance authorities. At the international level, managementsupervision to consider whether changes are of climate-related risk continues to receiveneeded to account for climate-related risk; (2) the significant attention from the Internationalgathering and sharing of examples of effective Association of Insurance Supervisors (IAIS) andpractices for developing climate scenario analysis in similar organizations. In the US, 2021 saw a numberthe insurance sector; and (3) the consideration of of specific steps taken by the Federal government,how to integrate climate related financial risks in the the NAIC and the New York Department ofannual data collected as part of the Global Financial Services (NYDFS) to provide guidanceMonitoring Exercise.regarding their expectations for the insuranceFurther, in October 2021, the Sustainable Insurance Forum industry with regard to the incorporation of climatemet to discuss several topics, including: (1) the impacts of change risk into governance, enterprise riskclimate-related risks on the insurability of assets; (2) management and business strategies. Further, thebroader sustainability issues (including its scoping study process by which the Federal government, theNature-Related Risks in the Global Insurance Sector); and NAIC and the NYDFS have produced their guidance(3) climate risks in the actuarial process. has been closely watched by other US state insurance regulatory authorities, and it is likely thatAlso in October 2021, the EU-US Insurance Dialogue similar guidance will begin to be issued by suchProject held a public virtual meeting, where two authorities in the near future. working groups on climate-related topics were developed to focus on: (1) climate risk financial Developments at the International Level oversight, including climate risk disclosures, supervisory reporting and other financial In late 2021, a number of international insurancesurveillance; and (2) climate risk and resilience, supervisory organizations emphasized theincluding innovative technology, pre-disaster importance of environmental issues. For example, inmitigation and adaptation efforts and modeling.November 2021, the IAIS held its annual conference in which it included a panel focused on emergingDevelopments at the Federal Levelgood practices in climate risk scenario analysis for insurers and steps, which insurance supervisors canOver the course of 2021, the Federal government took take, to advance scenario analysis as an effectivea number of steps with respect to climate change, which will directly impact the insurance industry. 84|Global Insurance Industry Year in Review 2021'