The insurance and mortgage sectors are concerned with the changing risks to their portfolios from geohazards including:
- coastal erosion
- groundwater flooding
The Bank of England’s climate-related stress testing for insurers and mortgage providers has further emphasised the potential impact that climate change might have on these sectors.
Consideration of spatial and temporal climate change impact-related variability is important for these areas and is closely tied to available data resolution. There is also variability across the sectors in the importance of the timescales over which changes may occur. For example, mortgage lenders may be more interested in the 25+ year term compared to sectors focusing on annual renewals.
Changes in how these sectors conduct business are increasingly driven by regulatory changes. Consideration of these different drivers is fundamental to how BGS can focus future development of climate change datasets to support them. The ability to provide information to support these areas is again subject to the resolution of data available and the projections that are subsequently drawn.