IAG and QBE have joined a United Nations international pilot program to improve the insurance industry’s climate risk disclosure.

The UN Environment Program’s Finance Initiative pilot group, which includes 16 insurers representing about 10% of global premium, will develop analytical tools to improve understanding of the industry’s climate risks.

The work will help insurers meet recommendations from the Financial Stability Board’s Taskforce on Climate-related Financial Disclosures.

“The pioneering work of this group will pave the way for greater climate risk transparency and climate action by the global insurance industry,” taskforce Chairman Michael Bloomberg said.

The pilot program will assess climate risks in core insurance portfolios and products, rather than in global assets under management.

The Finance Initiative has convened similar work by banks and investors before a summit in New York next September to drive further action on emissions targets.

IAG CEO Peter Harmer says it is vital the financial sector works collectively to share knowledge and create a framework for transparent and sustainable operations and reporting.

A recent Intergovernmental Panel on Climate Change report highlighted the need for action to limit global warming.

QBE CEO Pat Regan says climate is a priority issue for the international company, and the pilot will help improve its climate scenario analysis modelling. “We look forward to collaborating with our peers on this collective challenge.”

The other participants are Allianz, Axa, Intact Financial Corporation of Canada, Lansforsakringar Sak of Sweden, Mapfre of Spain, Japan’s MS&AD, Munich Re, NN Group of the Netherlands, Sompo Japan Nipponkoa, Storebrand of Norway, Swiss Re, Canadian insurers TD Insurance and The Co-operators, and Tokio Marine Nichido.