in the position to adopt resulting guidelines or requirements ( in the eba case ). nevertheless, at a moment where networks or work streams are burgeoning, especially within european institutions, we should be very careful about the good coordination of these different initiatives to avoid redundancy and duplication. it is also important that the nfgs, which remains a club of the willing, ensure some minimal degree of cooperation and harmonization by issuing high - level recommendations. from this point of view, i welcome the six very important recommendation issued in april directed to supervisors, central banks and the financial sector : i ) integrating climate - related risks into financial stability monitoring and supervision ; ii ) integrating sustainability factors into own - portfolio management ; iii ) bridging the data gaps ; iv ) building awareness and intellectual capacity and encouraging technical assistance and knowledge sharing ; achieving robust and intentionally consistent climate and environment related disclosure ; vi ) supporting the development of a taxonomy of economic activities. in the longer - run, when there will be a global convergence about the necessity to issue global standards and regulatory requirements, global standard setter such as the bcbs and fsb would need to take the lead on addressing climate change - related risks. 12 1 main findings : climate change : which risks for banks and insurers? acpr. banquefrance. fr / sites / default / files / medias / documents / as _ cover _ note _ en. pdf analysis and synthesis no. 102 : “ french insurers facing climate change risks ” april 2019 acpr. banquefrance. fr / sites / default / files / medias / documents / as _ 102 _ climate _ change _ insurers _ en. pdf 2 analysis and synthesis no. 101, “ french banking groups facing climate change - related risks ”, april 2019acpr. banque - france. fr / sites / default / files / medias / documents / as _ 101 _ climate _ risk _ banks _ en. pdf 2 / 2 bis central bankers'speeches

improving profitability in the insurance sector : as the duration of liabilities is longer than that of assets, this has a positive impact on the balance sheet and therefore on the solvency of insurers. as a result, the solvency capital requirement ( scr ) coverage ratio for insurance companies has risen from 247 % in q4 2022 to 255 % in q2 2023. looking further ahead, the rise in interest rates makes it possible to refocus portfolios on higher - yielding assets. this is also resulting in portfolio shifts by customers, with redemptions of life insurance policies totalling eur 62 billion page 4 of 12 over the first nine months of 2023 ( including eur 47 billion in non unit - linked contracts ). however, the ratio to premiums was relatively contained at 73 % in q3 2023, well below its record high of 100 % observed at the end of 2011. we are closely monitoring the slowdown in life insurance net inflows and reallocations to other savings products, insofar as these involve greater risk of capital loss and higher liquidity risk. another key point is that, despite the economic slowdown, banks'cost of risk has not increased significantly, and has even remained at a moderate level. the quality of assets remains high : the ratio of non - performing household loans has remained stable, while the ratio of non - performing business loans has increased slightly to close to 4 % at the end of june 2023. this stability is attributable inter alia to the high proportion of fixed rate loans in business loan books. the soundness of french banks in this area has been confirmed by the results of european stress tests published in late july. while we do not expect a widespread deterioration in the cost of risk in the short or medium term, we are carefully tracking borrower solvency. in particular, certain commercial real estate players have already been weakened by structural changes affecting their business segment and by their high level of debt, making them more vulnerable to higher financing costs. 1. 2 liquidity has generally been preserved page 5 of 12 major concerns had been voiced regarding liquidity, especially in the wake of the failures of silicon valley bank in the united states and credit suisse. eight months on, however, french banks are enjoying very stable levels of total deposits and liquidity coverage ratios that remain well above 100 %. so what we are seeing with the rise in interest rates is not a widespread'deposit