On 29 September, the Bank of England’s Prudential Regulation Authority (PRA) released a report entitled “The impact of climate change on the UK insurance sector: A Climate Change Adaptation Report”. The report explores the role of the insurance sector and the PRA in the context of climate change, assessing the related risks and opportunities for the industry. The document is the first of its kind for an insurance regulator. The report concludes that further research and stakeholder engagement are needed to fully understand and incorporate climate change risks into the insurance sector and PRA framework.
ENHANCE project helped inform the report with results from the London case study, which reviews existing risk analyses to develop a disaster risk profile for London flood and evaluates current and potential new risk management partnerships. ENHANCE project partners will continue to engage in the discussions on the topic.
Report by the Prudential Regulation Authority:
The impact of climate change on the UK insurance sector: A Climate Change Adaptation Report
Jenkins, K, Hall, J, Mechler, R, Lorant, A, Haer, T, Botzen, W, Aerts, J, Kohler, M, Pulido-Velazquez, M and Lopez-Nicolas, A (2015), Deliverable 5.2: Key economic instruments for risk reduction and management for the case studies, report for the ENHANCE consortium, UOXF; IIASA; IVM; PCC and UPVLC.
Surminski, S et al, ‘Evaluation of multi-sectoral partnerships: flood risk management and climate change in London’, report for the ENHANCE consortium, forthcoming.