{
  "docId": "019dd923-5ca1-7489-b639-8827c17e5ed9",
  "docSlug": "41a33bc1bcbb8d0e",
  "documentTitle": "Sustainability Risk Under Solvency II",
  "authorId": "OliverWyman",
  "authorName": "Oliver Wyman",
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  "notes": "The slide uses a table-like structure to map regulatory requirements against climate risk integration.",
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      "kind": "callout",
      "text": "While Pillar II integration is inevitable, internal model users are encouraged to also consider the integration of sustainability risk into Pillar I requirements.",
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      "kind": "paragraph",
      "text": "The current regulatory risk management framework for insurers - Solvency II - does not explicitly require sustainability risks to be incorporated. However, according to the interpretation of various regulators, sustainability risks are captured implicitly within the Solvency II framework.",
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      "text": "While Pillar II integration is inevitable, internal model users are encouraged to also consider the integration of sustainability risk into Pillar I requirements.",
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      "kind": "source-note",
      "text": "1. See e.g. EIOPA. in Opinion on Sustainability within Solvency II (EIOPA-BoS-19/241, 2019); PRA in The impact of climate change on the UK insurance sector (2015) or BaFin in Sustainability: a duty and a challenge for the insurance industry (Issues 2/2019)",
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      "kind": "table",
      "text": "Solvency II Pillar I, II, III requirements vs climate risk integration",
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      "kind": "title",
      "text": "UNDER SOLVENCY II, SUSTAINABILITY RISK IS RELEVANT FOR BOTH PILLAR I AND PILLAR II REQUIREMENTS",
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      "evidence": "The deck delves into the specifics of sustainability risk under Solvency II, highlighting the challenges in modelling climate-related risks.",
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      "evidence": "The deck notes the increasing regulatory attention on sustainability and climate risk, emphasizing the need for insurers to address these risks proactively.",
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