Why insurance protection gaps are a concern for central banks

The Bank of England, Institute and Faculty of Actuaries and the Financial Conduct Authority are all calling for greater resilience against climate change

AS THE physical risks from climate change increase, rising and repeated losses could place pressure on the availability and affordability of insurance in areas exposed to these shocks, and if insurance coverage falls, losses will instead fall on households, businesses, banks and governments, warns James Talbot, executive director for international and executive sponsor for climate at the Bank of England (BoE).