US state insurance regulators adopt new climate risk standard

Written by Adam Cadle

11/04/2022

A bipartisan group of US state insurance regulators led by Insurance Commissioners Ricardo Lara of California and David Altmaier of Florida have adopted a new standard for insurance companies to report their climate-related risks, in alignment with the international Task Force on Climate-Related Financial Disclosures (TCFD).

Under the new standard, insurance companies required to respond to the annual NAIC Climate Risk Disclosure Survey will need to comply with TCFD reporting by November 2022. Fifteen states – including California, Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, Minnesota, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Vermont, and Washington – have committed to utilise the NAIC survey in 2022 for insurance companies licensed in their jurisdictions, representing nearly 80% of the US insurance market.

“Our global climate crisis affects every state, requiring us to reach across partisan divides to find solutions that protect all people,” California Insurance Commissioner Ricardo Lara said.

“By holding insurance companies to this global standard for climate disclosure, insurance regulators are showing the power of united leadership in our efforts to address climate change and reduce the negative impacts on insurance consumers.”

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