LONDON (Reuters) – Insurers need to plug data gaps to be better prepared for the impact of climate change on their operations, the Bank of England said on Wednesday.
The BoE has just published the outcome of its first climate-related stress test of leading insurers and banks, concluding they would be able to cope in general.
“Addressing data gaps for climate analysis is a priority if insurers are to deliver effective climate risk management, and to innovate and develop products to support the transition to a more climate-sustainable pathway,” Stefan Claus, BoE technical head of division, told the Association of British Insurers.
Another gap is that the capital framework does not adequately cover risks from climate and a conference on this issue is planned for the fourth quarter of this year, Claus said.
(Reporting by Huw Jones; editing by Carolyn Cohn)
