climate stress tests News

ECB to Limit Purchases of Longer-Term Debt Issued by Climate Laggards

The European Central Bank will limit purchases of longer-term debt issued by companies that rank poorly under a new scoring system created to screen out polluters and tackle climate change. The maturity limit will cut the “longer-term exposure of the …

ECB Climate Stress Test Highlights $71 Billion Risk for Euro Zone Banks

A sudden jump in carbon prices coupled with floods and droughts this year would lead to losses of at least 70 billion euros ($71.1 billion) for the euro zone’s largest banks, the European Central Bank said on Friday. The ECB …

Europe’s Landmark Test of Banks’ Resilience to Climate Risk Is Softer Than Expected

Europe’s landmark test of banks’ resilience to global warming was far softer than many lenders had expected, according to people familiar with the matter. Even the toughest hypothetical scenarios in the European Central Bank’s climate stress test didn’t result in …

Insurers Must Be Better Prepared for Impact of Climate Change: BoE

Insurers need to plug data gaps to be better prepared for the impact of climate change on their operations and further work may be needed on how much capital they should hold, the Bank of England (BoE) said on Wednesday. …

Insurers, Banks Must Take Climate Action or Face Profit Hit, Higher Capital Charges: BOE

LONDON – Banks and insurers that fail to manage climate risks as a “first-order” issue could face a 10% to 15% hit to annual profits and higher capital requirements, the Bank of England (BoE) said on Tuesday. In its first …

EU Regulator Says Insurers Could Face Climate Stress Tests as Soon as 2023

LONDON – Insurers could face European climate stress tests as soon as 2023, the head of the EU’s insurance regulator said at the Reuters Future of Insurance Europe conference on Thursday. The insurance industry faces exposure to climate change risk …

Japanese Insurers Struggle with Climate Change Cost Estimates

TOKYO – As the world tries to price the cost of climate change, Japan’s second largest non-life insurer MS&AD foresees the potential rise in claim payments in 2050 to be anywhere between 5% to 50% from current levels. Sompo Holdings, …

Explaining Climate Change and Financial Disclosure for Insurers

TOKYO – Japanese financial institutions are struggling to put a price tag on the cost of climate change, an effort made difficult by the long timeframe and a lack of data for making credible predictions. Non-life insurer MS&AD, for one, …