by Jbs033109 c3 — April 6, 2009—Insurance companies will need to educate themselves and their policyholders about the risks of climate change under a new mandatory requirement of the National Association of Insurance Commissioners (NAIC). The new requirement mandates that large insurance companies disclose to regulators the financial risks they face from climate change, as well as actions the companies are taking to respond to those risks.
The scope of issues covered by the new disclosure requirement reflects the many ways in which climate change will impact the insurance industry. In addition to reporting on how they are altering their risk-management and catastrophe-risk modeling in light of the challenges posed by climate change, insurers will also need to report on steps they are taking to engage and educate policymakers and policyholders on the risks of climate change, as well as whether and how they are changing their investment strategies.
For more information, visit the Web page for the NAIC Climate Change and Global Warming Task Force.
