In the fast-paced world of climate and sustainability, it's been a hectic few weeks for the insurance industry.
Kicking things off, the European Insurance and Occupational Pensions Authority (Eiopa) set the sector abuzz by proposing higher capital requirements for insurers with fossil fuel assets.
Environmental groups like ShareAction celebrated the move, calling it a bold step in tying financial stability to climate action.
Yet, the proposal didn't receive universal acclaim. Internal pushback within Eiopa and industry concerns over cost and complexity highlight how tricky this transition might be.
The ball is now in the European Commission's court.
Though it's uncertain what the Commission will do, new financial services Commissioner Maria Luís Albuquerque hinted at her recent confirmation hearing that Solvency II should be given time to settle, suggesting a cautious approach to further changes.
Meanwhile, climate change reminded everyone of its devastating power.
At the end of October, Spain was battered by extreme flooding in its eastern and southern regions, with insured losses estimated at over €1bn ($1.1bn).
The torrential downpours ravaged farmland, disrupted communities and underscored a grim reality: "unprecedented" weather events are becoming all too common.
Relief organisations have mobilised to aid recovery, but for insurers, these mounting losses are a stark warning that climate risks are intensifying rapidly, creating fresh challenges for the industry.
At the COP16 UN Biodiversity Conference, insurers doubled down on action for nature-related risks. Romie Goedicke of the UN Environment Programme Finance Initiative (UNEP FI) highlighted a noticeable shift: insurers aren't just checking boxes on metrics, they're pushing for systemic changes to safeguard biodiversity.
The Taskforce on Nature-related Financial Disclosures also gained more supporters, with Asia, led by Japan, contributing the majority of the 18 global insurer signatories.
Italian insurance group Generali also made a notable move, expanding its oil and gas exclusion policy to include midstream and downstream activities. This is one of the insurance industry's most comprehensive positions on fossil fuel underwriting, putting pressure on peers to consider similar policies.
Looking ahead, all eyes turn to the UN's COP29 climate conference in Baku starting this week, where UNEP FI promises a packed agenda, from resilience-building to net-zero initiatives.
This year's meeting has been branded "the finance COP" as key items on the agenda include a new agreement for developed countries to deliver climate finance to developing countries. Insurers are poised to play a critical role.
Progress in Azerbaijan is threatened by a "dead duck" US delegation that has been sent by outgoing President Joe Biden but is returning to a country with a president and federal government that is largely dismissive of action on climate change.
Negotiators will agree something in the early hours of 23 November, it's just a question of how meaningful it will be.
