NAIC Participates in Brookings Panel on Climate-Related Financial Risk
Addressing climate risk and resiliency is part of the National Association of Insurance Commissioners’ (NAIC) greater mission to manage risks, ensure the availability and affordability of insurance products, promote insurer solvency, and close protection gaps.
The U.S. Department of the Treasury’s Federal Insurance Office (FIO) on Tuesday released a report on “Insurance Supervision and Regulation of Climate-Related Risks.” The report makes 20 policy recommendations that involve the ongoing work of the NAIC related to climate risk and resiliency.
“The NAIC is reviewing the key findings of the report and FIO’s recommendations as they pertain to actions state insurance regulators can take or are already taking to address climate risks and resiliency,” said Chlora Lindley-Myers, NAIC President and Director of the Missouri Department of Commerce and Insurance.
“We note that many of the recommendations align with initiatives currently underway at the NAIC and are supported by the ongoing work of the NAIC Climate Risk & Resiliency Task Force,” Director Lindley-Myers said. The NAIC Climate Risk & Resiliency Task Force is co-chaired by Lori K. Wing-Heier, Director of the Alaska Division of Insurance, and Ricardo Lara, California Insurance Commissioner.
“As FIO indicates in its new report, the states, the NAIC, and FIO all have important roles to play in helping address climate-related risks in the insurance industry,” Director Lindley-Myers added.
To coincide with the FIO report’s release, the Brookings Institution hosted an event on Tuesday to discuss integrating climate-related risks into insurance supervision and regulation and to highlight efforts by the NAIC and state insurance regulators to address those risks.
Scott A. White, Commissioner of the Virginia Bureau of Insurance and Secretary-Treasurer of the NAIC, represented the NAIC on a panel discussion on “Assessing Insurance Regulation and Supervision of Climate-Related Financial Risk.”
“I would like to thank the Brookings Institution for providing us an opportunity to discuss our ongoing work as state insurance regulators to address climate-related risk and resiliency. Across each U.S. state and territory, we face risks from natural perils and are united in our commitment to promote competitive and healthy insurance markets and protect consumers,” Commissioner White said. “We share FIO’s commitment to mitigating climate-related risk and enhancing consumer outreach and education.”
About the National Association of Insurance Commissioners
As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally.