Climate change poses risk to financial stability, says Mark Carney
Mr Carney, 50, who has been head of the Bank for two years, warned that insurers were exposed to each of three types of risks that climate change posed to financial industries: physical risks like floods and storms, “liability risks” from future claims and “transition risks” – financial problems linked to the move to introduce a low-carbon economy.
He added: “The challenges currently posed by climate change pale in significance compared with what might come. The far-sighted amongst you are anticipating broader global impacts on property, migration and political stability, as well as food and water security.
And I thought the whole point of insurance companies was that they ‘take on’ risk? What next – amandatory insurance for food and water security?