Insurance industry climate risk disclosure

The state Commissioners of Insurance in California, Washington State, and New York have announced that they will require insurance companies operating in those states to disclose their assessment of climate risk and the steps they are taking to ensure coverage for such risk.

According to sources quoted by the California Department of Insurance,  2011 set a record for catastrophe losses for insurers. A significant portion of those losses were due to severe storms and flooding. Crop insurers paid out a record amount in claims on U.S. crop damage. The California press release quotes Andrew Logan, insurance program director at Ceres, an investor group that has been active in pushing for stronger climate disclosure by the industry, as stating “Climate change will have major implications for the insurance industry, yet few insurance companies are identifying their potential exposure and strategies for dealing with it.”

More details are available at http://www.insurance.ca.gov/0400-news/0100-press-releases/2012/release009-12.cfm

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