EXPLORING POSSIBLE CLIMATE-RELATED MARKET RISK CAPITAL REQUIREMENTS
The increasing frequency and severity of natural disasters due to climate change pose significant challenges for insurance companies. Insurers face additional risks from investing in climate-polluting industries because they could deteriorate in value as a result of changing market conditions or policy actions. In November 2022, EIOPA (The European Insurance and Occupational Pensions Authority) published a discussion paper exploring climate-related transition risk on assets.
The paper discussed various approaches to classify assets into climate-friendly and harmful categories and to assess their market risk. Due to the complex nature of the exercise, no changes to capital requirements were proposed at that stage, and feedback from stakeholders will further shape the proposed methodologies. The article highlights the challenges in constructing portfolios and assessing capital charges for climate transition risk, as well as the necessity for improved data requirements and forward-looking models to address recent changes in climate awareness and policies.
Download to learn about:
Stay ahead of the curve!
Finalyse InsuranceFinalyse offers specialized consulting for insurance and pension sectors, focusing on risk management, actuarial modeling, and regulatory compliance. Their services include Solvency II support, IFRS 17 implementation, and climate risk assessments, ensuring robust frameworks and regulatory alignment for institutions. |
#Regtech
#DigitalTransformation
#RiskAppetite
#InsuranceRisk
#IFRS17
#InsuranceAccounting
Finalyse BankingFinalyse leverages 35+ years of banking expertise to guide you through regulatory challenges with tailored risk solutions. |
#ResponsibleAI
#AIFairnessAssessment
#CRR3Validation
#RWAStandardizedApproach
#FRTBCompliance
#MarketRiskManagement
Finalyse ValuationValuing complex products is both costly and demanding, requiring quality data, advanced models, and expert support. Finalyse Valuation Services are tailored to client needs, ensuring transparency and ongoing collaboration. Our experts analyse and reconcile counterparty prices to explain and document any differences. |
#IndependentValuation
#StructuredProductsValuation
#VaRCalculation
#RiskManagementOutsourcing
#EMIRSFTRReporting
#SecuritiesFinancingRegulation
Finalyse PublicationsDiscover Finalyse writings, written for you by our experienced consultants, read whitepapers, our RegBrief and blog articles to stay ahead of the trends in the Banking, Insurance and Managed Services world |
Finalyse’s take on risk-mitigation techniques and the regulatory requirements that they address
A regularly updated catalogue of key financial policy changes, focusing on risk management, reporting, governance, accounting, and trading
Read Finalyse whitepapers and research materials on trending subjects
About FinalyseOur aim is to support our clients incorporating changes and innovations in valuation, risk and compliance. We share the ambition to contribute to a sustainable and resilient financial system. Facing these extraordinary challenges is what drives us every day. |
Finalyse CareersUnlock your potential with Finalyse: as risk management pioneers with over 35 years of experience, we provide advisory services and empower clients in making informed decisions. Our mission is to support them in adapting to changes and innovations, contributing to a sustainable and resilient financial system. |
Get to know our diverse and multicultural teams, committed to bring new ideas
We combine growing fintech expertise, ownership, and a passion for tailored solutions to make a real impact
Discover our three business lines and the expert teams delivering smart, reliable support