Regulatory Alerts2023-06-14
Added · Updated
Q&A Climate-related risks and insurers
Dutch insurers are required to integrate climate-related risks into their Own Risk and Solvency Assessments (ORSA) by analyzing and documenting the influence of physical and transition risks on their risk profile. This obligation applies to the asset and liability sides of the balance sheet, requiring insurers to present and explain the outcomes of this analysis in their ORSA reports. If climate-related risks are deemed immaterial, insurers must explicitly state this in their explanation. The guidance covers both physical risks, such as damage to collateral, and transition risks, such as changes in market value due to climate policy.