PANEL DISCUSSION: REGULATORY APPROACHES TO MANAGING THE FINANCIAL RISKS FROM CLIMATE CHANGE. HOW ARE DIFFERENT REGULATORS APPROACHING THE CHALLENGE AND WHAT WILL THE FUTURE REGULATORY LANDSCAPE FOR MANAGING CLIMATE RISK LOOK LIKE?
- Overview of Regulatory stances and work
- Network for Greening the Financial System
- International Association of Insurance Supervisors (IAIS) Sustainable Insurance Forum (SIGF
- EFRAG's European Lab PTF on climate related reporting
- What is the picture outside of Europe?
- Response to the PRA supervisory statement on how physical and transition climate risks should be integrated into how businesses are run
- Will other regulators follow suit?
- Feasibility of having sustainability in Pillar I as well as Pillar II
- Does regulation go far enough?
- Who should be driving the response to climate change? Regulators or industry?
- How much progress is possible without clear defined mandatory policy?
- How can industry and regulators work better together to achieve an accepted global standard for identifying, measuring, managing and disclosing climate risks and opportunities?
- What future action might insurers expect to see from regulators in the near future?
Gabrielle Siry, Autorité de Contrôle Prudentiel et de Résolution (ACPR)
Hugh Savill, Director of Regulation, Association of British Insurers (ABI)
Mr Olaf Sleijpen, Director Insurance Supervision, De Nederlandsche Bank
Tobias Buecheler, Head of Regulatory Strategy, Allianz
PANEL DISCUSSION: DRIVERS OF CHANGE: SUSTAINABLE FINANCE AND TCFD
- How will the EU sustainable finance taxonomy play out and evolve?
- How are firms intending to interpret this and build it into their climate strategy?
- How will it be mandated at the political and regulatory level?
- Challenges for the industry
- Implications for capital requirements
- Implications for business strategy
- Is the EU approach to taxonomy the best way? Is there a different way to classify assets?
- Where are we with TCFD?
- What lessons have been learned?
- To what extent have TCFD recommendations been integrated into the core business?
- Next steps
Michèle Lacroix, Head of Group Investment Office, SCOR
Nathan Fabian, Chief Responsible Investment Officer, Principles for Responsible Investment
Marisa Parmigiani, Sustainability Manager, UNIPOL GROUP
Dennis Sugrue, Senior Director and Insurance Sector Lead Financial Services Group EMEA, S&P
Sylvain Vanston, Group Head of Climate & Environment. Axa
Moderator: Yo Takatsuki, Head of ESG Research and Active Ownership, AXA Investment Managers
THE INSURER AS A PARTNER IN THE TRANSITION TO A LOW -CARBON ECONOMY
- Insurance from simple risk transfer to enterprise risk management service, taking into account broader environmental, technological and social trends
- Exploring the context: Therefore, action on climate transition embedded in wider ESG Agenda and development to a broader understanding of “insurance”
- Climate transition will require from insurers:
- Working to increase transparency: discussion of initiatives to create better and more comprehensive data on CO2 related metrics among insurance clients/investees
- Improve and rethink portfolio steering for insurance and investment: technical and/or political steering in order to diminish equity streams to certain industries (i.e. coal) and increase equity streams to others (i.e. renewables)
- Work on clear positioning: developing, aligning and standing for clear viewpoints on climate transition to all its stakeholders
- Regulatory context: the regulatory environment for insurance and investment is emerging, what can regulation achieve and what is a challenge?
- Incentives for clients:
- Which direct incentives are available already and what is still a challenge? (pricing, coverages, risk services)
- Which indirect incentives work well and which one are more challenging? (example: portfolio steering vs. brokers)
- Rethinking the role of an insurer considering the challenge to manage the transition to a low-carbon economy
Speaker: Christopher Bonnet, Head of ESG Business Services, Allianz
KEYNOTE ADDRESS: HOW IS CLIMATE CHANGE DRIVING AND CHANGING BUSINESS MODELS IN ECONOMIC SECTORS AND WHAT DOES THAT MEAN FOR INSURANCE?
This session will look at how business models in industries such as energy, mobility and agriculture are changing due to climate and sustainability related drivers. It will consider the long-term business impacts this will have for the insurance business model and the secondary niche impacts we should be aware of.
Keynote Speaker: John Scott, Head of Sustainability Risk, Zurich
IN CONVERSATION WITH GABRIEL BERNARDINO
Gabriel Bernardino, Chairman, European Insurance and Occupational Pensions Authority (EIOPA)
Christopher Cundy, Managing Editor, INSURANCEERM
THE C-SUITE PANEL: MAINSTREAMING CLIMATE RISK & FOSTERING A HOLISTIC AND INTERCONNECTED APPROACH TO UNDERSTANDING AND MANAGING CLIMATE RISK–STRATEGIC CHALLENGES AND APPROACHES
- To what extent is climate risk becoming mainstream into the core business? What work remains to be done?
- Joining up the thinking and working holistically. How can the key stakeholders better communicate and come together to develop a consistent approach to climate risk across both sides of the balance sheet?
- How have climate risk strategies and approaches evolved over the past year – what has been the practical implications of this and how do you see them evolving in the future? How do you anticipate your climate risk strategy will impact your business and customers?
- How are the business models of clients changing? How are you monitoring evolving customer behavior as public awareness of climate risk increases? How can insurers engage and incentivize their clients towards sustainable investment opportunities?
- How are you managing/facilitating the cultural shift required internally to respond to climate change?
- How can the broking segment of the insurance value chain play its role in addressing climate change?
- How do you anticipate global industry responses evolving? What will good look like in 5 years time?/what does good need to look like?
Alessa Quane, Executive Vice President and Chief Risk Officer, AIG
John Scott, Head of Sustainability Risk, Zurich
Adrian Sweeney, UK & International Chief Underwriting Officer, RSA Group
Erick Decker, Chief Investment Officer, Southern Europe and Emerging Markets, Axa
Moderator: Maryam Golnaraghi, Director Climate Change & Emerging Environmental Topics, The Geneva Association
INTEGRATING CLIMATE SCIENCE WITH INVESTMENT MANAGEMENT
- Exclusive partnership with Woods Hole Research Center
- How effective are climate models?
- Is the market really mispricing climate risk?
- Which physical climate risks are insurers exposed to?
- Risk mitigation beyond divestment
- Utilising climate risk through the strategic asset allocation lens
Speaker: Tim Antonelli, CFA, FRM – Insurance Portfolio Strategist, Wellington Management
STREAM A: INVESTMENT
STREAM B: MODELLING
14:20 PANEL DISCUSSION: DRIVING OPPORTUNITIES FOR RESPONSIBLE INVESTMENT: HOW CAN THE GREEN FINANCE MARKET EVOLVE AND DEVELOP SUFFICIENTLY TO ADDRESS CLIMATE CHANGE?
Daisy Streatfeild, Investor Practices Programme Director, Institutional Investors Group on Climate Change
Prasun Mathur, Head of Private Assets, Aviva
14:20 EXTENDED SESSION:PANEL DISCUSSION: HOW DO YOU MAKE SENSE OF CLIMATE CHANGE RISK, AND BEGIN TO ASSESS FINANCIAL IMPACTS FROM CLIMATE CHANGE GIVEN ALL THE UNCERTAINTIES AROUND MODELLING IT?
Lasse Wallquist, Swiss Re
Alkis Tsimaratos, Managing Director, Willis Re and Head of EMEA West/South operations
Representative, Willis Towers Watson
14:50 FRAMEWORKS TO MEASURE THE ENVIRONMENTAL AND SOCIAL BENEFITS OF INVESTMENTS
This session will present Zurich' impact measurement framework that spans across different asset classes. The framework focuses on two impact metrics "CO2 emissions avoided" and "People benefited".
The presentation will cover the following aspects:
Speaker: Danielle Brassel, Responsible Investment Analyst, Zurich
PANEL DISCUSSION: CLIMATE RELATED STRESS TESTING AND SCENARIO ANALYSIS
Designing scenarios and creating narrative around the scenarios
- Incorporating latest climate science into scenario planning
- How do you implement it?
- How does it flow through to the solvency number?
- EIOPA guidance on stress testing and scenario analysis
- What external support is available to support firms in initiating and carrying out stress tests and scenario analysis?
- Embedding long-term scenario analysis into an insurer’s risk management, governance and ORSA.
- Results/feedback from recent UK stress tests
- Use of scenario analysis in disclosure of climate related risks and opportunities
- Using results from the stress tests and scenario analysis exercise to inform and drive business strategy
- Where are we in the journey towards standardization of scenarios, methodologies and outputs of scenario-based assessments
Sebastian Rath, Principal Insurance Risk Officer, NN Group
Ben Carr, Aviva
Dr Nina Seega, Research Director for Sustainable Finance, University of Cambridge Institute for Sustainability Leadership
Francesca Gostinelli, Head of Group Strategy, Economics and Scenario Planning, Enel
David Lunsford, co-founder, Carbon Delta and Executive Director, MSCI
2019 SCORECARD FEEDBACK ON INSURANCE, COAL AND CLIMATE CHANGE
- Coal insurance restrictions go mainstream
- Leaders and laggards in the sector
- Ending new and phasing out existing coal operations
- New frontiers of insurance action on climate change
Speaker: Peter Bosshard, Finance Program Director, The Sunrise Project
BUILDING AND STREGTHENING CLIMATE RESILIENCE AND ADAPTATION
- Importance of adaptation and climate resilience
- Role of insurance as society’s risk manager
- How can insurance support resilience – as underwriter, as investor, as risk manager
- Reflection on market practice and experiences with insurance and adaptation in developed and developing countries
Dr. Swenja Surminski, Head of Adaptation Research, Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science (LSE)
TITLE: AXA CLIMATE - USE OF PARAMETRICS IN STRENGTHENING CLIMATE RESILIENCE
- After the event - Immediate protection through fast payment
- Before the event - Risk mitigation and avoidance
- Beyond fast payment and risk avoidance - Strengthening communities resilience and adaptation to climate change
Speaker: Alice Legrix de la Salle, Chief Finance and Operating Officer. AXA Climate