On November 21, 2018, Mark Carney, the governor of the Bank of England, gave a speech at St James’s Palace. The occasion was a royal birthday, but that was not the topic of his missive. Instead, Mr Carney talked about challenges posed by climate change to the financial industry.
“[Two-thousand and seventeen] set a record for weather-related insurance losses at about $140bn. Losses in 2018 may again be among the worst in history,” he said. These impacts are real, and present systemic risks to the financial worlds. Insurers, he said, should start stress testing for climate impacts.
