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Solvency II overhaul is ignoring huge climate risks

Insurers’ capital buffers could be put under real pressure when extreme climate events strike

Both the impacts of climate change and the need to change insurance to reduce climate risks, are having massive impacts on the insurance industry
Both the impacts of climate change and the need to change insurance to reduce climate risks, are having massive impacts on the insurance industry Photo: David Talukdar/Getty Images

Jesse Griffiths is chief executive of the Finance Innovation Lab

The prime minister says reforms to Solvency II are about getting rid of an “EU diktat which has been unnecessarily preventing… giant investments in UK firms and in infrastructure”. But his comments on the ongoing efforts to overhaul key insurance industry regulation are highly misleading.

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