The Prudential Regulation Authority in the UK (the PRA) recently issued a report on the effects on climate change on the UK insurance sector (coinciding with a speech given by Mark Carney, Governor of the Bank of England on the same issue). The report and speech identify three primary risks in this regard which present a potentially substantial challenge to insurers' business models. These are physical risks (e.g. flood and storm), transition risks (i.e. due to a switch to a lower carbon economy) and liability risks.