IAIS eyes climate resilience and AI standards in 2025-26 roadmap

By Rebecca Delaney

Jan 28 - (The Insurer) - The International Association of Insurance Supervisors (IAIS) will look to develop an implementation assessment methodology for the newly adopted insurance capital standard as part of its roadmap for 2025-26, as well as focusing on climate-related resilience and the use of AI.

The roadmap is the first to be issued under the IAIS' new strategic plan, which was unveiled in October 2024 and runs until 2029. The plan is particularly focused around the key pillars of climate change, digital innovation and building resilience.

The latest roadmap underlines a shift in the supervisory body's focus, with greater emphasis on supporting comprehensive and globally consistent implementation of IAIS standards. This includes the development of an implementation assessment methodology for the insurance capital standard, which was adopted last month.

"The roadmap sets out the immediate priorities for the IAIS as we pivot from a strong focus on setting standards to ensuring their effective implementation," said Shigeru Ariizumi, IAIS committee chair.

"This transition is crucial for maintaining robust and consistent supervision across the insurance sector, and we are committed to supporting our members throughout this process."

The IAIS remains focused on its four core principles, which include monitoring and responding to key risks and trends in the global insurance sector. Under the new roadmap, the IAIS said it will enhance its annual global monitoring exercise to detect systemic risks, with a particular focus on the potential financial stability implications of natural catastrophe protection gaps.

This is related to two strategic themes set out in the strategic plan: strengthening supervisory responses to climate change, and supporting insurance in serving its societal purposes of building resilience.

Under the core principle to set and maintain globally recognised, effective and proportionate supervisory standards, the IAIS will also look to develop guidance on effective supervisory practices and facilitating peer exchange, particularly related to the supervision of climate-related risks and the application of IAIS standards on the use of AI.

"Our focus on climate change, digital innovation and building resilience reflects the key role that insurance plays in addressing some of society’s most pressing global challenges," said IAIS secretary general Jonathan Dixon.

"By addressing these strategic themes, we aim to equip our members with the tools and knowledge needed to navigate the complexities of their impact on the insurance sector and to contribute to enhancing sustainable growth and resilience."