Closed-book provider Phoenix and two other insurers have had a complaint to the FCA filed against them claiming they have failed to address how climate change could affect their businesses, according to reports.
Phoenix, Lancashire and Admiral all do not mention climate change in their 2017 annual reports, a complaint by non-profit gruop ClientEarth seen by the Financial Times claims, despite the group arguing that it presents a principal risk for each.
This could impact not just claims on insurance policies due to climate events, but also assets held in portfolios like fossil fuels.
ClientEarth claims these disclosures need to take place as part of the FCA’s Disclosure Guidance and Transparency Rules.
ClientEarth insurance industry lawyer Stephanie Morton says: “By omitting financially material climate risks from their annual reports, these companies are not giving the full picture. Without this information, how can investors make a fully-formed investment decision?”
Phoenix tells the paper it was currently reviewing the letter from ClientEarth.
Admiral says it does make reference to severe weather events in its report, while, Lancashire told the Financial Times it considers itself as compliant with the requisite transparency rules.