The International Association of Insurance Supervisors (IAIS) is consulting on a paper that will provide guidance on managing the challenges and opportunities arising from climate-related risks.

Climate change and sustainability is a key theme in the IAIS strategic plan for 2020-24, with the group warning the issue may have wide-ranging impacts on the structure and functioning of the global economy and financial system.

The draft “application paper” was developed in conjunction with the Sustainable Insurance Forum group of supervisors convened by the UN Environment Program.

Application papers don’t establish specific standards, but provide guidance and examples of good practice on issues such as supervisory review and reporting, corporate governance, risk management, investments and disclosures.

Comments on the paper are due by January 12, while a webinar to provide more details will be held next Monday at 10:30pm AEDT.

More details are available here.