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In a recent survey it has published, IAIS has pinpointed three types of issues.
It recommends first of all that underwriters give more importance in their models to the indirect repercussions triggered by climate events, especially with regard to the disruption of supply chain. Secondly, it also calls for more prudence in terms of the investments made in real estate.
Indeed, the value of some real estate properties is likely to sustain massive depreciation following the passage of a devastating climate event. Finally, IAIS has voiced concerns regarding inadequate information that insurers and reinsurers provide for investors and for the authorities concerning their exposure to climate risks whereas it is their duty to reveal information to all the stakeholders.