Analysts at flood science specialist, JBA Risk Management, have warned that UK property insurers need to start planning how they will map the long-term impacts of climate change on their books.
The warning comes ahead of the confirmation this June of the Prudential Regulatory Authority’s (PRA) detailed reporting requirements on insurers’ climate change resilience, and also JBA’s estimates of up to 30% increase in average annual loss on UK residential property alone by 2040.
The Bank of England’s Climate Biennial Scenario’s latest stress test is the culmination of a number of BoE directives on how banks and insurers should manage the financial risk associated with climate change.
