Mark Carney, the former Bank of England governor, recently issued a warning that climate change poses a huge risk to global stability. At a gathering of leading insurers at Lloyd’s of London, Mr Carney pointed out that the rapid increase in weather-related catastrophes was causing a spike in financial costs. But he also warned that the challenges currently posed by climate change “pale in significance compared with what might come”. He said our generation has little incentive to avert future problems. Ironically, insurers are among those with the biggest interest in climate change as the syndicates operating at Lloyd’s, the world’s oldest insurance market, are the most exposed to disasters such as hurricanes and floods. Mr Carney said the after-effects of such disasters were likely to grow worse:
“The challenges currently posed by climate change pale in significance compared with what might come. “The far-sighted amongst you are anticipating broader global impacts on property, migration and political stability, as well as food and water security.”