The impact of climate change on the UK insurance sector

The report’s objective is to provide a framework for considering the risks arising from climate change through the lens of the Bank of England Prudential Regulation Authority’s statutory objectives in relation to insurers – i.e. the safety and soundness of firms and appropriate protection of policyholders. The report therefore takes the form of an initial risk assessment. It explores possible responses to the risks identified but is not intended to provide a policy prescription. The report also discusses climate change-related opportunities.