The Bank of England, along with the Institute and Faculty of Actuaries and the Financial Conduct Authority, has raised concerns about the growing insurance protection gaps due to climate change. James Talbot of the Bank of England warned that as physical risks increase, repeated losses could make insurance less available and affordable in affected areas.
The institutions are calling for greater resilience against climate-related risks, emphasizing the need for proactive measures to address potential financial stability issues. The warning highlights the broader implications of climate change on the insurance sector and the economy at large.