A senior Bank of England official has indicated that the regulator is currently not considering requiring insurers to hold additional capital buffer to address climate risk.
"I don't think we envisage addressing climate risk through Pillar 1," said David Rule, executive director for insurance supervision at the U.K. central bank, according to Reuters. Rule added that the regulator is looking more at disclosure from companies.
The BoE is holding meetings with roughly 10 insurance companies based in the U.K. to determine their response to climate change and intends to issue a policy statement on follow-up actions later in 2018, the report added.
