insurance agenda with respect to the regulation and supervision of insurance. as this audience knows, less than a month ago, on 22 september, the european commission adopted a proposal for amending the solvency ii directive. as today ’ s conference is mainly to do with the priorities of the g20 and its three overarching keywords, i shall concentrate on sustainability issues within this proposal ; we must leave a fuller account of, and comment on, it for another occasion. let me however state very briefly that our overall assessment of the 4 / 5 bis central bankers'speeches commission ’ s proposal is mainly positive at this stage. the proposal appears to contain several elements that are potentially useful for mitigating the issue of procyclicality and unwarranted volatility of requirements. the determination of the relevant parameters, however, will be the subject of subsequent delegated regulation ; therefore, it is not yet possible to evaluate the overall effect of the package. we shall continue to offer our contributions at both the european and the national level. we are ready to support the government on a number of technical aspects that deserve attention. going back to ‘ planet ’, the commission ’ s proposal envisages the following actions : ( i ) to include in the own risk and solvency assessment ( orsa ) the consideration of risks relating to climate change, which will be considered as material / significant and will need to be treated specifically, including through the use of quantitative scenarios ; ( ii ) to mandate eiopa to recalibrate natural catastrophe ( ‘ nat cat ’ ) parameters at least every three years ; and ( iii ) to mandate eiopa to consider, by june 2023, a dedicated prudential treatment of exposures relating to assets or activities associated substantially with environmental and / or social objectives. these actions are largely welcome. in relation to the last point, however, let me reiterate here, as both a banking and an insurance supervisor, a position that i have already expressed on a number of occasions. prudential regulation should remain strictly risk - based. we should only introduce reductions in capital absorption for ‘ green ’ investments on the basis of sound evidence of that they carry a reduced risk. direct incentives intended to speed up the transition to ‘ net zero ’ should be channelled not through prudential waivers, but through different means, such as taxes and subsidies. the climate risk element in the revision of solvency ii does not come out of the blue.

luigi federico signorini : ensuring a prosperous future for people and the planet introductory remarks by mr luigi federico signorini, senior deputy governor of the bank of italy and president of the insurance supervisory authority ( ivass ), at the ivass – insurance summit, rome, 18 october 2021. * * * the title of this event recalls the three overarching priorities of the italian g20 presidency : ‘ people, planet, prosperity ’. while the rome g20 leaders summit is still a few days ahead of us, the finance track concluded its work under our presidency last week. it therefore seems appropriate for me to give you a brief summary and evaluation of the main legacies of a year of very intense work on the financial sector issues that we followed most closely. i shall do that presently. ‘ planet ’, as we shall see, also has a bearing on insurance, and this will be the theme of the last part of my speech. first, however, let us take stock of the current circumstances of the global economy. italy took over from saudi arabia as the g20 presiding jurisdiction while the world was still in the middle of the covid crisis. in most developed countries, the dramatic lockdown of the first ( ‘ spring ’ ) wave had given way to more targeted measures for the ‘ autumn ’ wave, with a much lower cost in terms of lost output. however, global activity was still a long way from prepandemic levels. furthermore, little progress had been made in many low - income and developing countries. the recovery in 2021 in developed countries has been as astonishingly fast as the recession in 2020 was deep. the rapid spread of vaccination has led to a gradual easing of those preventive measures that were based on a drastic limitation of physical contact. by now, the measures still in force are no major impediment to normal economic activity. contrary to the worst fears about ‘ scarring ’, firms have resumed investing and consumers consuming. far fewer bankruptcies have emerged so far than was expected. this recovery, while still uneven and exposed to risks, is a testimony both to human ingenuity, which produced effective vaccines in an unprecedentedly short time, and to the fundamental resilience of market economies. yet it was also the result of extraordinary public intervention, which supported households ’ disposable income and companies ’ balance sheets and thus avoided the worst ( though it did so at the cost, consciously incurred, of a one - off increase