Congressional Democrats ask insurance regulators for update on climate risk factors

[BumRushDaShow]

Source: The Hill

08/12/24 3:49 PM ET


Three congressional Democrats on Monday requested an update from the National Association of Insurance Commissioners (NAIC) on the progress of incorporating climate-related risks into the industry.

In 2023, the Treasury Department’s Federal Insurance Office (FIO) issued 20 recommendations for the NAIC, including weighing changes in Risk-Base Capital formulas for climate disasters such as floods and hurricanes. The FIO also recommended developing a national standard for materiality — a circumstance that would affect an insurers’ assessment of whether a policy is worth the risk — for climate-related risks.

In the Monday letter, Senate Budget Committee Chair Sheldon Whitehouse (D-R.I.), House Financial Services Committee Ranking Member Maxine Waters (D-Calif.) and Rep. Sean Casten (D-Ill.) asked NAIC President Andrew Mais for further information on the organization’s progress by August 26.

The members noted increasing numbers of private insurers have left climate change-affected states like Louisiana, California and Florida, forcing state-owned “insurers of last resort” to expand their services to cover the losses, which itself could disrupt the mortgage and real estate markets. Federal Reserve Chair Jerome Powell has also testified before Congress that climbing insurance costs have contributed to ongoing inflationary pressure.

Read more: https://thehill.com/policy/energy-environment/4824370-democrats-request-update-climate-risks/

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Link to House Committee on Financial Services Democrats PRESS RELEASE - Ranking Member Waters, Representative Casten, and Senator Whitehouse Call on State Insurance Commissioners to Share Update on Efforts to Address Urgent Climate-Related Insurance Risks

Link to LETTER (PDF) - https://democrats-financialservices.house.gov/uploadedfiles/8.12.24_ltr-naic-fio-recs-cr.pdf

[keithbvadu2]

1. Politicians may ignore climate change. Insurance companies keep up with the times.

[slightlv]

2. Unfortunately, their keeping up with the times

means that a lot of us (even in the midwest, without historic flooding or tornadoes) are getting priced out of necessary insurance... and this goes beyond home insurance. It also encompasses auto insurance. For time first time in my life ever, I'm afraid of not having insurance. There is only so far a SS check goes these days (and most of that is in the grocery store!). Come on, lower inflation... I'm still waiting to reap some of those benefits of lower costs.