Analysts in the insurance industry are being pressured to underestimate climate risks in order to lower premiums and enable more insurance deals. Financial Times reports this, citing five people in the industry who say it is common for executives, brokers and insurers to try to influence risk models despite significant catastrophe risks.
According to the whistleblowers, the conduct could create systemic risks and eventually make entire areas impossible to insure.
A legal opinion shared with British financial regulator FCA indicates that, if the claims are accurate, they could constitute serious regulatory breaches.
FCA says it will review the information.
