Page 19 - The Insurance Times February 2026

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News

Regulatory Change Emerges vency, conduct, sustainability disclo- The guide focuses on underwriting ac-
sures and technology governance, of- tivities, an area that has received com-
as Top Risk for Global Insur-
ten within tight implementation paratively less structured guidance
ance Industry timelines. This has placed strain on in- than investment portfolios in climate

Regulatory change has been identified ternal resources and increased reliance transition planning. It provides insurers
as the most significant risk facing the on specialised compliance and risk with a practical framework to assess
global insurance industry, as insurers management capabilities. exposure to transition risks, set cred-
navigate an increasingly complex and Regulatory uncertainty is also influenc- ible targets and integrate climate con-
fragmented policy environment. Evolv- ing strategic decision-making. Product siderations into underwriting decision-
ing rules across jurisdictions are re- innovation, market entry and cross- making across sectors and geographies.
shaping how insurers manage capital, border expansion are increasingly The framework encourages insurers to
price risk, design products and comply shaped by regulatory feasibility rather identify high-emission and climate-sen-
with supervisory expectations, creating than purely commercial considerations. sitive sectors within their underwriting
operational and strategic challenges In some cases, insurers are reassessing
for the sector. exposure to certain markets or lines of portfolios and develop strategies to
engage with clients on transition path-
Insurers are facing heightened regula- business due to rising compliance bur- ways. This includes setting expectations
tory scrutiny driven by concerns around dens and supervisory expectations.
around risk mitigation, encouraging
financial stability, consumer protection, improved disclosure, and gradually ad-
climate risk, data privacy and the use UN Forum Launches Glo-
justing underwriting appetite in line
of emerging technologies. New and bal Transition Plan Guide with climate goals and regulatory ex-
amended regulations are requiring pectations.
firms to invest heavily in compliance for Insurance Underwrit-
systems, reporting frameworks and ing The guide also emphasises governance
governance structures. Differences in A United Nations–backed forum has and accountability. Insurers are en-
regulatory approaches between re- launched a first-of-its-kind global transi- couraged to embed transition planning
gions are further complicating opera- tion plan guide aimed at helping insur- within enterprise risk management
tions for multinational insurers, in- ers align their underwriting portfolios frameworks, ensure board-level over-
creasing compliance costs and execu- with climate transition objectives. The sight and establish internal processes
tion risk. for monitoring progress. Transparency
initiative is designed to support insur-
One of the key pressures stems from ance companies in managing climate- and consistency in disclosures are high-
the pace and volume of regulatory related financial risks while contributing lighted as essential to building credibil-
change. Insurers must adapt to over- to the global shift towards a low-carbon ity with regulators, investors and other
lapping requirements related to sol- and climate-resilient economy. stakeholders. T

The Insurance Times February 2026 17