Insights Inside Insurance


Washington and California, in partnership with the Departments of Insurance from Connecticut, Minnesota, New Mexico, and New York, conduct the annual survey and release the results on the California Department of Insurance website. The Climate Risk Disclosure Survey is sent to insurance companies that generate $100 million or more in annual premium income and are licensed in the participating states, which in total encompasses over 70 percent of the U.S. insurance market. The TCFD guidelines were approved by the G-20 Finance Ministers and endorsed by both environmental groups and more than 1,500 businesses from around the world. The guidelines will help insurance companies better understand the concentrations of carbon-related assets in their investments and recognize climate risks and opportunities in their investing strategy. The news of increased alignment with the TCFD guidelines comes as insurance companies worldwide work toward consistent climate disclosure, a recommendation of multiple international insurance supervisors and a requirement in France. “This is a significant step in the right direction for climate disclosures in the insurance industry,” said Commissioner Kreidler. “Using TCFD’s guidelines allows insurance regulators to assess insurers’ risk in a meaningful way, it streamlines reporting for the insurance industry and aligns with practices in other industries nationally and internationally.” click this “The record-breaking wildfires, heat waves and extreme weather we experienced in 2020 are a taste of the future,” said Commissioner Lara. “With more insurance companies adopting a global standard for reporting climate risks, the industry is going to be in a better position to meet growing threats in a way that protects consumers and prevents future losses.” “Commissioner Kreidler, Commissioner Lara and their colleagues deserve credit for their leadership in addressing climate risks facing people across the country,” said Steven M. Rothstein, Managing Director, Ceres Accelerator for Sustainable Capital Markets. “Using TCFD climate disclosure is a vital first step for insurance companies to address climate change.” “Globally climate change financial risk is now a mainstream focus of forward-looking firms and economies," said Geoff Summerhayes, executive board member of the Australian Prudential Regulation Authority.