How to ensure you meet the PRA’s Climate Change requirements

Earlier this month, the Bank of England circulated the Biennial Exploratory Scenario, a guide for participants taking part in the preparatory exercise investigating the financial risks of climate change. The document provides useful information for all firms who are working to embed the assessment of this risk into their risk management framework. In particular, the guide provides detailed information on key metrics and modelling approaches.

With less than six months left of 2021, it is important for all insurers to begin considering how best to embed the management of climate-related risks into their existing risk management processes and procedures, including their ORSA. Please get in touch if you would like to discuss.

For a comprehensive guide to the PRA’s Climate Change requirements, please see our newsletter piece here.