Page 40 - Insurance Times November 2022

Green Impact Exchange: Greenwashing fail' size various entities may assume. On the other hand our
regulatory oversight remains fragmented. Climate triggers,
versus ESG!
therefore, provide both an opportunity as well as threat.
Greenwashing is perhaps the biggest obstacle to successful This is the time to act with urgency.
ESG integration. We need innovative solutions to address this
problem. A clever idea in this space is the venture launched Related to this fragmentation is the handling of Environmental,
by veterans of exchanges, especially the NYSE. Essentially, Social & Governance (ESG). Each of our financial regulator
companies that want to credibly signal their green credentials operates in a different time zone. The insurance regulator has
can list on the Green Impact Exchange (GIX) and comply with not even entered the ESG ring. The International Financial
its rigorous green standards. Dual listing on GIX is an instant Reporting Standards (IFRS) disappointed by missing out on
stamp of green credentials instead of fiddling with ESG ratings, sustainability. The birth of International Sustainability Standards
and the confusing world of several NGOs who give companies Board (ISSB) has invited serious flak. All 1300 + views are on
a thumbs up or a thumbs down. the IFRS website. The key issue being - missing 'double
materiality'. Factoring carbon pricing, with Scope 3 for sure,
Last but not the least: Synergy could make the transition to a decarbonised world a lot easier.
From North America to the down under - we have seen But we live in challenging times.
higher frequency and severity of say flood losses. Result of
creating assets in flood plains and vulnerable geography. It References
is not about lack of regulations - for want of which banks [i] Open letter: banks and insurers must account for
continue to lend and insurers readily cover - as it is about climate risk | Finance Watch (finance-watch.org)
lack of common sense. Why else would Indian financial
[ii] Mining.com: Ten financial actors own half of the world's
institutions continue lending to build dams in the seismically
oil, gas, coal emissions - study
hyper-sensitive terrain with resultant unintended ecological
[iii] India banks need to account for climate risk with $84B
consequences? What makes frantic asset creation continue
at stake, warns nonprofit | S&P Global Market
in sinking metropolis? The entire length and breadth of the
Intelligence (spglobal.com).
country could be potentially littered with stranded assets.
And all fingers will point at Climate Change! [iv] Climate transition: risks and opportunities (europa.eu)
[v] Hans Stegeman LinkedIn post: Biodiversity loss, decline
In conclusion
of ecosystem services, and overall environmental
The above-mentioned are random rather than
degradation can hit economies through multiple
comprehensive challenges posed by the burgeoning Climate
channels
Crisis to our financial system. Climate does not recognise silos
[vi] DeSmog: Revealed: The Climate-Conflicted Directors
- its onslaught tends to be systemic. Ironically, the
Leading the World's Top Banks
architecture of our financial system, as it metamorphoses,
manifests as growing form of cross-holdings or ownerships. https://illuminem.com/illuminemvoices/a9c523b0-82f3-
That itself poses systemic triggers - howsoever 'too big to 4268-a8df-26b86fafa023.

Role of the Regulator IRDAI is working on BIMA SUGAM- a one stop shop for
insurance. It is a new on line platform approved by the
Insurance for All by 2047 is the call and desire of the IRDAI
Regulator where different types of insurance products will
Chairman. It is an excellent objective for our nation. Already
be sold. Those policies will be in the digital form and thus
the Chairman is paving the way for it by liberalization of
buyers need not worry about the safe keeping of their
procedures in approving the new products, bringing in the
documents. Besides selling and servicing of policies, Bima
system of ' use and file' instead of the present protocol of '
Sugam will make it possible for the customers to port their
file and use' and cutting down unnecessary statements to
policies from one provider to another.
be submitted by the insurers. He has also formed a few
Committees headed by insurance veterans to bring about I am sanguine that with these positive approaches,
improvements in the functioning of the insurance companies insurance industry will be able to stand up to the target and
as well as achieving more ease of doing business. dream of the insurance Regulator.

The Insurance Times November 2022 35