A report from the European Insurance and Occupational Pensions Authority (EIOPA) maps current practices and challenges in the identification, measurement and management of biodiversity risks by insurers and reinsurers as part of the existing Solvency II risk management framework.
The report analyses market practices based on the existing regulatory requirements for the identification and management of sustainability risks in the Solvency II Directive and Delegated Regulation.
EIOPA’s report notes promising market practices among insurers and reinsurers and points to areas where further engagement will be essential to strengthen the industry’s ability to respond to biodiversity-related risks going forward.