Few US insurers alter investment strategies in response to climate change impact considerations

Written by Adam Cadle

27/11/2020

Few US insurers have reported altering their investment strategy in response to considerations of the impact of climate change on its investment portfolio, findings published by the National Association of Insurance Commissioners (NAIC) have revealed.

Data taken from 1,200 insurance firms and detailed in a report entitled Assessments of and Insights from NAIC Climate Risk Disclosure Data shows that more than half of all companies reported at least some engagement in enterprise-wide climate risk management. A majority of insurers across every line of business reported similar levels of engagement with internal greenhouse gas management.

“Disclosure of climate change risks and associated actions are important because of the potential impact of climate change on insurer solvency and insurance availability and affordability across all major categories of insurance: property casualty, life and health,” NAIC communication research scientist Lisa Groshong said.

“For this report, we looked at data from about 1,200 companies that participated in the survey in 2018. We believe the climate risk disclosures will help regulators evaluate insurance industry risks and help other companies identify actions to mitigate climate risk.”

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