This is an excerpt from EERE Network News, a weekly electronic newsletter.
Insurance Regulators Require Disclosures of Climate Change Risks
Insurance companies will need to educate themselves and their policyholders about the risks of climate change under a new mandatory requirement of the National Association of Insurance Commissioners (NAIC). The new requirement, adopted on March 17, mandates that large insurance companies disclose to regulators the financial risks they face from climate change, as well as actions the companies are taking to respond to those risks. 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 strategies. See the NAIC press release.