The Climate and Resiliency (EX) Task Force is organized around five workstreams. The workstreams are broken out by tab below to showcase the activities and topics covered under each group.
The Pre-Disaster Mitigation Workstream serves to accomplish the following:
- Participate in multi-agency/stakeholder educational efforts on coverage gaps and pre-disaster mitigation related to climate risks.
- Incentivize insurer recognition of enhanced building codes in underwriting and rating.
- Continue consumer education and awareness on coverage gap and pre-disaster mitigation related to climate risks and natural catastrophe exposure, including possible strategic partnerships.
Center for Insurance Policy & Research State Resiliency Map - this page provides links to resources within each State Department of Insurance including disaster risk management and peril-specific information.
NAIC and Federal Resources on Resiliency, Disaster Preparedness and Response - this page provides links to pertinent information created by the NAIC as well as Federal Agencies.
The Solvency Workstream serves to accomplish the following:
- Recommend enhancements to regulator solvency tools, including a risk framework for addressing wildfires and flood within the property/casualty (P/C) risk-based capital (RBC) formula, modifications to the Own Risk and Solvency Assessment (ORSA), the Financial Analysis Handbook and the Financial Condition Examiners Handbook. Develop climate risk stress tests and scenario analysis to evaluate potential financial exposure to both the physical and transition impacts of climate change. Provide scenarios, assumptions, and parameters for the stress testing exercise.
- Determine methodology for quantifying insurers' exposure to climate-related investments.
The Climate Risk Disclosure Workstream serves to accomplish the following:
- Consider modifications to the Climate Risk Disclosure to align with Task Force on Climate-related Financial Disclosures (TCFD) and promote uniformity in reporting requirements.
The Climate Risk Disclosure Workstream of the Climate and Resiliency Executive Task Force is seeking feedback on questions to help guide its recommendation on climate disclosures to the Task Force. These are not questions that would be posed to insurers as part of the Climate Risk Disclosure Survey. The Workstream plans to use the content heard and discussion from its meetings to inform their recommendations to the Task Force, considering each of these Questions to Determine Objectives of NAIC Climate Risk Disclosures.
Comments should be sent to NAIC staff (firstname.lastname@example.org) by March 3, 2021.
The workstream met to 1) hear the history and administration/collection process of the NAIC Climate Risk Disclosure Survey, 2) hear a presentation regarding the CIPR's report Assessing NAIC climate risk disclosure data, and 3) hear a presentation regarding phase 1 of the American Academy of Actuary's research on the NAIC Climate Risk Disclosure Survey.
Webex Recording: Climate Disclosure Work Stream-20210127
The workstream met to 1) hear a presentation from Principles for Responsible Investment's climate reporting framework, and 2) hear a presentation on the CDP's Climate Disclosures and Related Analytics.
Webex Recording: Climate Disclosure Work Stream-20210203
The workstream met to 1) hear a presentation from CERES regarding climate risk disclosure insurance recommendations, 2) hear a presentation on Zurich's climate risk disclosure process and preference, and 3) hear a presentation on AIG's climate risk disclosure process and preference.
Webex Recording: Climate Disclosure Work Stream-20210217
The workstream met to 1) hear a presentation from RBC Global Asset Management Inc. regarding use of climate disclosures, 2) hear a presentation from Sustainalytics regarding their perspective of the information received through the NAIC Climate Risk Disclosure Survey, and 3) discuss questions being contemplated by the workstream to inform their future recommendations to the Task Force.
The Innovation Workstream serves to accomplish the following:
- Discuss the use of innovative insurance products that respond to climate-related risks.
The Technology Workstream serves to accomplish the following:
- Apply technology, such as early warning systems and predictive modeling tools, to understand and evaluate climate risk exposures.