Climate change: No longer an emerging risk

In March 2023, the Central Bank of Ireland (CBI) published its Guidance for Reinsurance Undertakings on Climate Change Risk. The aim of the guidance is to provide more detail on how (re)insurers can meet EIOPAs requirements in this area. The guidance details the overarching principles the CBI expects (re)insurers to consider when assessing and managing climate change risks. It also includes specific guidance on key areas required to develop an in-depth understanding of how climate change risk may impact a (re)insurers business model over the short, medium and longer term. This briefing note summarises the CBI’s guidance and details how the various functions within a (re)insurance company can meet the CBI’s expectations in this area.