Introduction
Good morning everyone. I would like to thank Moody's for inviting me to speak on climate change: one of the most significant and urgent risks facing the whole of the economy, today and for decades to come. As such, a major issue across the financial services sector; but given today's audience, I shall concentrate on the insurance side.
With the pandemic, we are living through a systemic risk with major impacts on the real economy and consequently the financial services sector. While it is hoped Covid-19 will eventually run its course - and hopefully sooner if a vaccine is found - the impact and risks from climate change will be felt for decades to come. And although, insurers have demonstrated resilience to Covid-19 - with the sector remaining robust to downside stresses created by the pandemic - the resilience and successful adaption of the industry to the longer term threat of climate change is likely to be a longer challenge.
Insurance companies play a critical role in supporting businesses manage climate-related risks and provide critical long-term finance, such as infrastructure, that support economic growth. Consequently, the resilience and the ability to manage climate-related risks within the insurance industry is of significant importance.