LONDON (Reuters) – How much capital insurers must hold could be directly linked to their readiness to cope with risks from climate change, a senior Bank of England official said on Wednesday.
BoE executive director Anna Sweeney said there is “still some way to go” for a number of insurers in dealing with the impact of climate change on their balance sheets.
“It is therefore possible that the incentives to address climate change risk for both firms and supervisors could be enhanced if it were incorporated explicitly into firms’ capital requirements,” Sweeney told an event held by Moody’s rating agency.
(Reporting by Huw Jones, editing by Louise Heavens)
