The National Association of Insurance Commissioners in the US has 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 those risks. All insurance companies with annual premiums of $500m or more will be required to complete an Insurer Climate Risk Disclosure Survey every year, with an initial reporting deadline of 1 May 2010. The surveys must be submitted in the state where the insurance company is domesticated.
"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.”
For more information: climate change disclosure