Insurance Quick Takes: IFRS S1 and S2: What's the impact to insurance investing?

Discover our latest insights and implementation ideas for insurers related to trends and events in their industry.

Tim Antonelli, CAIA, CFA, FRM, SCR, Head of Multi-Asset Strategy - Insurance and Portfolio Manager
2024-11-30
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The views expressed are those of the speaker at the time of filming. Other teams may hold different views and make different investment decisions. The value of your investment may become worth more or less than at the time of original investment. While any third-party data used is considered reliable, its accuracy is not guaranteed. For professional, institutional, or accredited investors only.

IFRS S1 and S2: What's the impact to insurance investing? 

In our latest Insurance Quick Take, Tim Antonelli discusses the implications of two new sustainability reporting standards for global insurers, IFRS S1 and IFRS S2, and why it's not just IFRS filers that should pay attention. He explains how these standards will require insurers to disclose detailed information about their sustainability and climate related risks and opportunities, as well as their governance, strategy, risk management, metrics and targets. He also highlights the industry specific guidance that insurers must follow and potential investment opportunities.

IFRS S1 and S2 investment readiness checklist

Below is Tim’s suggested checklist of potential considerations to help insurers prepare.

  • Establish how your company has integrated ESG in your investment policy statement
  • Define roles for the oversight and integration of ESG/climate/sustainability for the invested assets
  • Identify both the material risks to, and opportunities for, your invested assets from climate
  • Define which implementation methods are utilized by your company (for example, screening, thematic, impact)
  • Work with your external managers to understand their ESG integration (if applicable)
  • Ensure a consistent firm-wide approach across functions (for example, underwriting and investments)
  • Link climate scenarios to your invested assets
  • Connect investment scenario modeling to firm-level financial projections and strategy
  • Understand material differences across asset classes, approaches, and styles
  • Identify gaps and create a project plan to remedy them (for example, data sources, modeling capabilities, impact investment program)

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