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Financial sector fails to account for climate risks when granting loans, insurance – supervisors
Banks and insurers have not been sufficiently accounting for the impacts of climate change, according to a risk report by the Federal Financial Supervisory Authority (BaFin). Financial authorities need better risk management for natural disasters, the authority warned, as extreme weather events could mean loans are not paid back and insurers might have to shoulder enormous claims, the country's financial watchdog institution said. "Companies in the financial sector need to look more closely at the physical risks of climate change," said BaFin head Mark Branson, Süddeutsche Zeitung reported.
