- Climate-related and environmental risks (C&E risks) are now an important focal point for supervisors
- Climate change constitutes an existential threat, implying large downside tail risks.
- Dealing with financial risks is the core of prudential supervision
- Physical climate risks tend to be correlated globally
- The economic consequences of physical climate risks could be mitigated by closing the large climate insurance protection gap.
- In the EU, only a quarter of losses caused by climate-related catastrophes are insured
