Bank of England warns of huge financial risk from fossil fuel investments
by Damian Carrington from on (#46F0)
Global action on climate change could cause insurers' investments in fossil fuels to take a huge hit, says bank's prudential regulation authority
Insurance companies could suffer a "huge hit" if their investments in fossil fuel companies are rendered worthless by action on climate change, the Bank of England warned on Tuesday.
"One live risk right now is of insurers investing in assets that could be left 'stranded' by policy changes which limit the use of fossil fuels," said Paul Fisher, deputy head of the bank's prudential regulation authority (PRA) that supervises banks and insurers and is tasked with avoiding systemic risks to the economy.
