The prudential regulator will release its general insurance climate vulnerability assessment in coming months, chairman John Lonsdale has told the Senate Economics Legislation Committee.

The assessment will provide insights into how insurance affordability may change over the medium term as climate risks evolve.  

Mr Lonsdale says extreme weather continues to place pressure on insurers, and climate risks can also have financial consequences for banks and superannuation trustees.

He says uncertainty and risks in the global financial system are at heightened levels.

Improving cyber resilience in the financial system is a priority for the Australian Prudential Regulation Authority, and it is working with companies to assess risks from concentrations of third-party providers.