Following the Prudential Regulation Authority's (PRA) publication of Supervisory Statement (SS) 3/19, detailing their expectations for firms’ management of climate-related financial risks, the PRA began actively supervising firms against those expectations in 2022. On 21 October 2022, Sam Woods published a letter: Thematic feedback on the PRA’s supervision of climate-related financial risk and the Bank of England’s Climate Biennial Exploratory Scenario exercise, setting out how the PRA expect firms to be able to showcase their approaches to managing climate risks by now.

In our latest newsflash, we cover the following areas:

• Capabilities that the PRA expect firms to be able to demonstrate by now
• Areas for improvement for climate risk management and scenario analysis
• Climate and Regulatory Capital
• Next Steps

Click to read our full newsflash

At Hymans Robertson, we have been working with insurers on their scenario modelling, development of data provision, compliance with TCFD and other climate-related regulatory requirements, and setting net-zero transition strategies. If you are interested in any of these topics, or you would like to discuss climate change or any of the above further, please get in touch.