UN BACKS INDUSTRY’S DISASTER RESILIENCE PROPOSALS

Insurance industry proposals to integrate disaster risk and resilience into the financial system have received support from the United Nations. The “1-in-100” initiative is a drive by public and private sector organisations, promoting disaster resilience and protecting against climate risk. At the initiative’s core is the 1-in-100 year financial stress test, similar to that developed in recent decades by the insurance sector to assess its ability to underwrite risks. In a joint action statement, released following the recent UN Climate Summit in New York, the United Nations outlined the commitments made by insurance-related organisations involved in the 1-in-100 initiative. These commitments include liaising with regulatory authorities and stakeholders to determine how the 1-in-100 stress test approach could be implemented beyond insurance into wider financial regulation and accounting standards by 2020.