Washington Commissioner Initiates Climate Risk Disclosure Survey for Insurers

Meta Description: Washington Insurance Commissioner Mike Kreidler has issued the annual Climate Risk Disclosure survey to insurance companies, aiming to enhance transparency and understanding of climate-related risks in the U.S. insurance market.

Introduction (first 100 words): Washington Insurance Commissioner Mike Kreidler has taken a significant step toward addressing climate-related risks in the insurance industry. In an announcement made on Friday, Kreidler revealed that he has sent out the annual Climate Risk Disclosure survey to insurance companies operating in the United States. The survey is a requirement for insurers with written premiums exceeding $100 million in 2022. Developed by the National Association of Insurance Commissioners’ Climate Risk and Executive Committee Task Force, the survey aims to promote transparency, identify vulnerabilities, and assess the potential impact of climate-related risks on the industry.

Content:

Washington Insurance Commissioner Mike Kreidler is actively working to address climate-related risks in the insurance sector. His office recently announced that the annual Climate Risk Disclosure survey has been sent out to insurance companies across the United States. This survey is mandatory for insurers with written premiums exceeding $100 million in 2022.

The Climate Risk Disclosure survey was developed by the National Association of Insurance Commissioners’ Climate Risk and Executive Committee Task Force, which Kreidler serves as the vice chair. Aligned with the Financial Stability Board’s Task Force on Climate-Related Financial Disclosure, the survey aims to provide transparency on how insurers manage climate-related risks and opportunities.

One of the key objectives of the survey is to offer guidance on identifying good practices and vulnerabilities in managing climate-related risks. It also serves as a baseline tool to assess the potential impact of climate-related risks on the insurance industry as a whole.

By collecting comprehensive data through the Climate Risk Disclosure survey, insurance regulators and the public can gain a better understanding of the climate-related risks faced by the U.S. insurance market. This information is vital for strategic management, shared learning among insurers, and collaboration among regulators and interested parties to address climate-related issues.

The Climate Risk Disclosure survey has a history dating back to 2010 when it was adopted by the National Association of Insurance Commissioners (NAIC). Initially administered by Washington, California, and New York to companies writing at least $300 million, the threshold was later lowered to $100 million. In the previous reporting year, 26 states and territories participated, and over 1,500 companies responded, representing nearly 80% of the national insurance market.

Insurance companies are required to submit their survey responses by August 31, and the results are expected to be available in the coming fall. The California Department of Insurance website will host the findings, providing stakeholders and the public with valuable insights into climate-related risks in the insurance industry.

Conclusion:

The Climate Risk Disclosure survey initiated by Washington Insurance Commissioner Mike Kreidler serves as a crucial tool in promoting transparency and addressing climate-related risks in the insurance sector. By gathering comprehensive data from insurers, the survey aims to enhance understanding, identify vulnerabilities, and facilitate collaboration among regulators and interested parties. The results of the survey are eagerly awaited, as they will contribute to strategic management and shared learning for insurers, ensuring the industry is better prepared to mitigate climate-related risks.

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