FRENCH REGULATOR ISSUES CLIMATE CHANGE WARNING TO INSURERS

French insurers need to realise the threats posed by global warming, including increases in claims, the country’s insurance regulator has warned. The Autorité de Contrôle Prudentiel et de Résolution (ACPR) has released its findings from its 2020 climate pilot exercise to assess the risks associated with climate change for a wide range of financial companies that included insurers. According to the ACPR, based on the basis of the information provided by insurers, the cost of claims could rise by a factor of between five and six in certain French departments between 2020 and 2050. The main hazards contributing to this increase in claims are related to the risk of drought and flooding, as well as cyclonic storms in France’s overseas territories.