Charlotte Clark, ABI Director of Regulation said: “We welcome the publication of the Bank of England’s results from its flagship Climate Biennial Exploratory Scenario (CBES) exercise, which participating insurers have invested significant time and resource into.
“The CBES results underscore the need for regulators, government, and financial services to work together with all sectors of the real economy to ensure that credible, realistic and governable transition plans are set out to underpin a UK-wide transition to a net-zero economy. These results demonstrate that failing to take action will be disastrous for the economy and ultimately consumers.
“Our members are committed to learning from the CBES results, and to building on the significant progress made in the past few years on their climate risk management capabilities and developing long-term transition plans. To unlock the industry’s full green investment capacity the Government must take an ambitious approach, including regulatory reform to the Solvency II regime
“Alongside this investment we continue to call on Government to invest in protecting society from the effects of climate change, specifically to invest in building and maintaining flood defences, and the exercise underlines how crucial that will be.”