New Regulatory Expectations for Climate Risk Management
The Prudential Regulation Authority (PRA) issued guidance in late 2025 (SS5/25) that sets out enhanced expectations for UK insurers (and other financially regulated firms) in managing climate-related financial risks. As part of these requirements, all regulated organisations must carry out a gap assessment and develop remediation plans by 3 June 2026. The guidance covers critical areas such as governance, risk management, climate scenario analysis, data, and disclosure, marking a significant evolution from previous standards and bringing a new level of clarity and consistency to the regulatory landscape.
Helping Insurers Meet PRA Expectations
Aon is dedicated to helping insurance companies understand and navigate these latest regulatory obligations. Our summary of the changes within PRA Supervisory Statement 5/25 provides clear insights into how expectations have developed, enabling insurers to accurately interpret the requirements.
We offer practical guidance on assessing and managing climate-related financial risks within your organisation, supporting your journey towards compliance and stronger risk management practices in line with supervisory standards.
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Enhancing Banks' and Insurers' Approaches to Managing Climate-Related Risks
