US state insurance commissioners approve international climate risk disclosure standard

The NAIC’s adoption of TCFD-aligned investigative standards was announced at the association’s recent spring meeting in Kansas City, MO.

The task force was created in 2020 to coordinate the association’s national and international efforts on climate-related risks and resilience issues. According to the NAIC, the task force developed a TCFD-aligned survey for insurers during a 14-month public engagement process, which was led by Oregon Insurance Commissioner Andrew Stolfi and Rhode Island Superintendent Elizabeth Dwyer.

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Through the survey, the task force determined that implementing a disclosure framework aligned with the TCFD would improve transparency on how insurers manage their climate-related risks, while incorporating international best practices. .

“Our global climate crisis affects all states, forcing us to cross partisan divides to find solutions that protect everyone,” said Ricardo Lara. “By requiring insurance companies to meet this global standard for climate disclosure, insurance regulators are showing the power of united leadership in our efforts to fight climate change and reduce the negative impacts on consumers of climate change. assurance.”

“The NAIC’s action shows that our state-based insurance regulatory system remains strong and flexible to respond to changing conditions in our markets and our world,” added David Altmaier. “Thank you to my fellow regulators for your commitment to working together to protect consumers.”

“Few regulators have more experience and understanding of the macroeconomic effects of climate risk than insurance regulators,” said NAIC CEO Mike Consedine. “By modernizing the NAIC’s Climate Disclosure Survey for the first time since its inception, participating members are taking a comprehensive, unified approach to protecting consumers through our state-based insurance regulatory system.”

The NAIC noted in a statement that insurance regulators in France, Switzerland and the United Kingdom currently require insurers to report in line with the TCFD.