Ceres applauds the National Association of Insurance Commissioners (NAIC) for its vote today to approve the revised Climate Risk Disclosure Survey.
This revised survey responds to recommendations from the U.S. Treasury Department’s Financial Stability Oversight Council’s climate recommendations and incorporates international best practices in adopting a framework for U.S. insurers to report on climate risk.
“This is a vital step to understanding the climate risk facing the insurance industry,” said Steven Rothstein, Managing Director, Ceres Accelerator for Sustainable Capital Markets, Ceres. “Once the updated Climate Risk Disclosure Survey is completed, it will provide an unprecedented perspective—making more risk information available from the insurance industry for the first time and reaching roughly 80% of the insurance industry.”
The revised survey will include many components from the Task Force for Climate-related Financial Disclosures (TCFD) recommendations and offer more detailed information on these on four thematic areas: governance, strategy, risk management, and metrics and targets.
All insurers with national premiums written of at least $100 million and operating in any of the 15 participating states and territories are required to complete and submit their survey on an annual basis. As of 2021, the following states/territories participate: California, Connecticut, District of Columbia, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Vermont, and Washington.
“Our global climate crisis affects every state, requiring us to reach across partisan divides to find solutions that protect all people,” said California Insurance Commissioner Ricardo Lara. “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.”
"I am very pleased that the NAIC has adopted changes to the NAIC Climate Risk Disclosure Survey. Participating insurers will now disclose their climate change exposure using the internationally accepted TCFD," said Mike Kreidler, Insurance Commissioner of Washington and original chair of the NAIC Climate Change Working Group from the mid-2000s to 2020 as well as a founding member of the Sustainable Insurance Forum. "Nearly 20 years ago, I was privileged to create and launch the Survey together with a group of farsighted colleagues. I’m pleased that the Survey is now updated to reflect state-of-the-art disclosure requirements in line with international standards.”
About Ceres
Ceres is a nonprofit organization working with the most influential capital market leaders to solve the world’s greatest sustainability challenges. The Ceres Accelerator for Sustainable Capital Markets is a center within Ceres that aims to transform the practices and policies that govern capital markets in order to reduce the worst financial impacts of the climate crisis. It spurs action on climate change as a systemic financial risk—driving the large-scale behavior and systems change needed to achieve a net zero emissions economy. For more information, visit ceres.org and ceres.org/accelerator and follow @CeresNews.