ESGUPTAKE

The overall objective of ESG-UPTAKE is to strengthen EU Member States NCAs' capacity to monitor and address ESG risks in the financial sector. In particular, the project supports a selected group of NCAs in identifying, monitoring and assessing the impact of ESG risks on their respective supervised entities as well as on the entire financial sector, with a view to adopt appropriate supervisory responses and indirectly contribute to the achievement of the overarching EU and national goals in the area of sustainability

On a concrete level, together with my colleagues we are responsible for the insurance supervision of the NCAs. In this regard, I am contributing to three work packages:

1. WP2: Data mapping and enhancement
   Understanding the supervisory, public and private data landscape with respect to ESG in the insurance sector (e.g. via the Solvency II quantitative reporting templates and disclosure requirements), mapping this landscape, and presenting recommendations on how to enhance the data in view of climate risk modeling, such as via Climate Stress Tests.
2. WP3: Enhanced ESG supervisory framework
   Developing methodologies and tools for assessing ESG risks in the insurance sector and determining appropriate supervisory responses. In particular, assisting the NCAs in the development of the ESG risk assessment framework with a focus on the development and implementation of Climate Stress Tests.
3. WP3: Addressing the Insurance Protection Gap in Italy
   Here we consider the insurance protection gap in Italy, and how to address it via the use of ESG risk models. We investigate the current causes of the gap, considering both the academic literature, stakeholder interviews and a survey. We then assess the medium to long-term prospectives of this gap, using quantitative models. In light of those scenarios, we provide recommendations on how to address the gap, to the Italian Insurance Supverision authority IVASS