Policyholder Protection Schemes in a Climate-Stressed World

This TC Note and accompanying podcast provides practical guidance to supervisors in emerging economies on the role of policyholder protection schemes (PPSs), as climate-related risks are affecting insurer vulnerability and recent events reveal new intricacies about the interaction between catastrophes and insurer failure. 

Additionally, the Note:

• Clarifies what PPSs are and describes the global landscape.
• Explains how climate change affects supervisory assumptions.
• Presents lessons from recent catastrophe-related cases.
• Suggests supervisory priorities in jurisdictions with and without PPSs.