ESG & Investing
BIS Sees Climate Losses Hitting Governments as Insurers Exit
- Retreat by insurers puts financial stability at risk, BIS says
- Global watchdog warns pullout by insurers may hit banks
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As insurers start to pull out from markets battered by the fallout of climate change, governments are increasingly at risk of having to foot the bill, according to the Bank for International Settlements.
“This trend, if left unabated, may lead to an insurance market failure for climate-related risks and ultimately force governments to become ‘insurers of last resort’,” researchers from BIS’s Financial Stability Institute said in a report.