Page 36 - Insurance Times November 2022

Reserve Bank of India

consultation on

Climate Change:

Many a slip 'twixt cup

Praveen Gupta
Praveen Gupta is a thinker, thought leader and a proven professional with
and the lip! profound understanding of the insurance industry. He pursues his passion of
exploring, learning and sharing from the exciting inter-sections between
Climate Crisis, Diversity, Governance, Risk and Tech. He essays his
passionate views through his blog; www.thediversityblog.com

India's central bank, the Reserve Bank of India (RBI), has recently embarked upon a
consultation process on climate change, with various stakeholders. However, there are some

critical missing components. The endeavour here is to highlight them and point at some
successful global approaches.

he Reserve Bank of India recently concluded a financial services regulators should be drawn into the
T consultation on Climate Change. It invited inputs emerging risks and good practices across many economies:
exercise. This submission made to the RBI discusses a few
from all stakeholders. The consultation rather
than extend to all financial services, was
The breadth and scope of the RBI exploration is impressive.
restricted to banking. What stops that from happening? Our
However, there are some critical missing components.
fragmented financial services regulatory protocol.
Moreover, looking at policies and their implementation
there is many a slip between the cup and the lip. The
Why is it necessary? Climate risk is systemic in nature and
endeavour here is to highlight them and point at some
impacts all components of financial services including
successful global approaches. Needless to mention, that a
insurance.
siloed approach to financial services is a rather dangerous
approach.
Basis his submission, Praveen was invited to write for
Illuminem.com. The article has generated significant global
The price for not having a unified financial
interest and discussion around emerging risks and good
practices. services regulator: Onus falls on the RBI!
In an open letter, sent to policymakers in the European
With his permission Insurance Times is reproducing the Parliament, Finance Watch and 13 partners call to include
article. It can also be accessed on: mandatory transition plans and capital requirements for
www.thediversityblog.com. climate-related risks in their review of the EU banks and
insurers prudential rules[i].
India's central bank, the Reserve Bank of India (RBI), has
recently embarked upon a consultation process on climate In not including financial institutions other than banks the
change, with various stakeholders. Climate risk is inherently Indian economy will be doing only a lip service to the
systemic - a siloed approach is, therefore, dangerous. Other challenge of Climate Change particularly when there are

The Insurance Times November 2022 31