Bank of England Report Warns of Climate Change Risks

A recent report of from the Bank Of England, Prudential Regulation Authority has warned of the significant financial risks associated with climate change.

There is evidence to suggest that insurance payouts (generally referred to as ‘losses’) arising from global natural catastrophes are increasing. The number of registered weather-related natural hazard loss events has tripled since the 1980s and inflation-adjusted insurance losses from these events have increased from an annual average of around US$10 billion in the 1980s to around US$50 billion over the past decade.

Source: Bank Of England Prudential Regulation Authority (2015),  “The impact of climate change on the UK insurance sector”, http://www.bankofengland.co.uk/pra/Pages/supervision/activities/climatechange.aspx