How climate change is impacting financial institutions
The increase in frequency and intensity of storms, floods and droughts have been identified as major issues impacting on insurance companies.
Climate change is making it hard for insurance companies to adequately assess insurable risks which in turn will drive up premiums for consumers.
University of Pretoria Professor of International Development Law and African Economic Relations Danny Bradlow says climate change will affect the stability of the financial sector Internationally.
Climate change is becoming a big factor affecting so many things, so financial institutions and insurance companies have had to accept that when they do their risk planning for the things that they insure, they have to take into account the risk that climate could affect that.Danny Bradlow - Professor of International Development Law and African Economic Relations - University of Pretoria
Banks that don't lend on long-term are also finding that more and more of their activities are being affected by climate.Danny Bradlow - Professor of International Development Law and African Economic Relations - University of Pretoria
Bradlow says climate change makes it complicated and harder to access impact on monetary policy.
It doesn't affect the Reserve Bank's concern with financial stability but it affect how they are going to regulate the banks to make sure that they are managing the risk s of finance better so it affects their regulations as well.Danny Bradlow - Professor of International Development Law and African Economic Relations - University of Pretoria
Listen to the full interview...