South African Insurers to Face Climate Stress Test, SARB Says

South Africa’s central bank plans to expand its examination of climate risk to the insurance industry, as it seeks to anticipate threats that can do far-reaching economic harm.

“This year we put out our first climate-risk scenario, common stress test, where we allow all of the banks to tell us how would they respond to a finance stress,” said South African Reserve Bank Deputy Governor Fundi Tshazibana. “We are going to progress that to go to the insurance sector,” she told an event in Stellenbosch, South Africa, on Friday.