Impacts of climate factors on UK insurance companies: evidence from the stock prices

Yuqing Qian, Zhongchi Wang and Fan Ye

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Climate change poses significant risks to the insurance industry, particularly through increased frequency and severity of weather events. In this paper, we examine the extent to which temperature, wind speed, and rainfall influence the stock prices of companies listed on the UK stock market. By using data of 1. Andrews Sykes Group plc. (ANSY) 2. Aviva plc (AVIVA) 3. Legal & General Group plc (LGEN) 4. Prudential plc (PRU) 5. Direct Line Insurance Group plc (DLGD) and conducting the multiple linear regression model and random forest model, the findings, illustrated through scatterplots, indicate a weak relationship and correlation between the dependent (stock prices) and independent variables (weather data), as shown by the P-values and R-values.

Keywords: climate change; stock market; UK insurance company (search for similar items in EconPapers)
JEL-codes: F3 G3 (search for similar items in EconPapers)
Pages: 8 pages
Date: 2025-11-06
New Economics Papers: this item is included in nep-env and nep-fmk
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Published in Advances in Economics, Management and Political Sciences, 6, November, 2025, 204(1), pp. 82 - 89. ISSN: 2754-1169

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