EIOPA opinion: Use of climate change risk scenarios in ORSA

The European Insurance and Occupational Pensions Authority (EIOPA) has published its opinion on the supervision of the use of climate change risk scenarios in ORSA. EIOPA will begin to monitor the application of the opinion two years after publication, from April 2023. Therefore, it is likely that European (re)insurers will come under pressure to integrate climate change risk into the ORSA process in 2021 and 2022. This briefing note provides a summary of the EIOPA opinion.