INSURANCE REGULATORS ADOPT CLIMATE CHANGE RISK
Requires Reporting of Risks,
SAN DIEGO (March 17, 2009) -
The National Association of Insurance Commissioners (NAIC)
today adopted a mandatory requirement that insurance companies
disclose to regulators the financial risks they face from climate
change, as well as actions the companies are taking to respond to
"Climate change will have huge impacts on the insurance industry
and we need better information on how insurers are responding to the
challenge," said Pennsylvania Insurance Commissioner Joel Ario, who
chairs the NAIC Climate Change and Global Warming Task Force.
"As regulators, we are concerned about how climate change will
impact the financial health of the insurance sector and the
availability and affordability of insurance for consumers. This
disclosure standard will give regulators the information we need to
better understand these risks."
All insurance companies with annual premiums of $500 million or
more will be required to complete an Insurer Climate Risk Disclosure
Survey every year, with an initial reporting deadline of May 1,
2010. The surveys must be submitted in the state where the insurance
company is domesticated.
The scope of issues covered by the new disclosure requirement is
broad, reflecting the many ways in which climate change will impact
the insurance industry. In addition to reporting on how they are
altering their risk-management and catastrophe-risk modeling in
light of the challenges posed by climate change, insurers will also
need to report on steps they are taking to engage and educate
policymakers and policyholders on the risks of climate change, as
well as whether and how they are changing their investment
For more information, visit the Web page for the NAIC Climate
Change and Global Warming Task Force at www.naic.org/committees_ex_climate.htm.
About the NAIC
Formed in 1871, the National Association of Insurance Commissioners
(NAIC) is a voluntary organization of the chief insurance regulatory
officials of the 50 states, the District of Columbia and five U.S.
territories. The NAIC has three offices: Executive Office, Washington,
D.C.; Central Office, Kansas City, Mo.; and Securities Valuation Office,
New York City. The NAIC serves the needs of consumers and the industry,
with an overriding objective of supporting state insurance regulators as
they protect consumers and maintain the financial stability of the
insurance marketplace. For more information, visit www.naic.org.
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