The IAIS has welcomed a draft global standard on the disclosure of climate-related financial disclosures published by the International Sustainability Standards Board (ISSB).

Responding to a public consultation on the exposure draft of the ISSB’s new standard, the IAIS noted the importance for insurers of a globally consistent baseline climate reporting standard; both as users and preparers of climate-related disclosures.

In its response to the consultation IAIS notes the importance of considering the specific characteristics of the insurance industry as investors and underwriters of other industries, to ensure this is effectively reflected in the standard. It notes that increased disclosure by companies in which insurers invest and underwrite will be necessary to support insurers in making public disclosures of sufficient quality and detail.

The IAIS is in favour of a timely implementation of the new standard as there is a pressing need to improve public disclosure of climate risk.

The IAIS will continue to closely monitor progress made by the ISSB and will review its own standards for supervisory disclosure requirements in light of the ISSB’s work to assess whether there are any additional revisions needed to the IAIS materials.