BANK OF ENGLAND TO INTENSIFY CLIMATE CHANGE SCRUTINY OF INSURERS

FILE PHOTO: Workers emerge from Bank underground station with the Bank of England (L) and Royal Exchange building (R) seen in the City of London financial district, London, Britain, January 25, 2018. Picture taken January 25, 2018. REUTERS/Toby Melville

LONDON – The Bank of England’s insurance regulator said on Thursday, Insurers in Britain face being tested to see how they could cope with a fallout from climate change on their balance sheets.

David Rule who works for the Bank said that they are taking “stock-take” meetings with around 10 insurers on their responses to climate change and planned to issue a policy statement later this year on follow-up actions.

Rule spoke to City & Financial conference, referring to the insurers compulsory capital buffer, he said, “I don’t think we envisage addressing climate risk through Pillar 1,”

“We are looking more at disclosure,” Rule said.

He added that stress and scenario testing had been “fertile ground” for thinking in future how firms should assess how they will be exposed  to climate change.

Photo Credit- Reuters

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