Rising cost of insuring against climate crisis will have wider knock-on effects for UK economy
A report by The CityUK warns that the rising costs of insuring against climate-related disasters could destabilize the UK financial system. Economists are calling for increased government intervention to manage these growing protection gaps.
Why it matters
It highlights the systemic economic risks posed by climate change and the potential failure of traditional insurance models.
Because of important role of insurance in oiling wheels of investment, CityUK says the difficulties of pricing climate risk will have knock-on effects across the financial system. Because of important role of insurance in oiling wheels of investment, CityUK says the difficulties of pricing climate risk will have knock-on effects across the financial system. Economics viewpoint Economic policy Rising cost of insuring against climate crisis will have wider knock-on effects for UK economy Heather Stewart As extreme weather events become more common, economists say government will need to take more active role to protect consumers
The article presents economic analysis and policy recommendations from industry groups and experts without taking a partisan stance.
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