NAIC Testifies On Impact Of Climate Change On Insurance Industry

WASHINGTON, D.C. (March 12, 2009) - Testifying today on behalf of the National Association of Insurance Commissioners (NAIC), Wisconsin Insurance Commissioner Sean Dilweg appeared during a hearing titled, "Climate Science: Empowering Our Response to Climate Change." Dilweg testified about the impact of climate change on the insurance industry.

"Insurance companies and consumers will be among the first to feel the effects of climate change, so the evolution of climate science is of keen interest to us as regulators, and is a key tool for the companies we regulate," Dilweg told members of the U.S. Senate Committee on Commerce, Science and Transportation. "The NAIC has taken a forward-looking approach to developing assessment tools that identify the potential impact climate change has on insurers and how insurers are assessing those risks."

Dilweg discussed the work of the NAIC Climate Change and Global Warming Task Force, and highlighted the Task Force's white paper, The Potential Impact of Climate Change on Insurance Regulation. The paper discusses the effects of climate change on insurance industry investment decisions, disclosures and underwriting practices. The paper also stresses the need for improved mitigation programs and land-use policies that reflect the potential for climate change impact.

In addition, insurance regulators, working together through the NAIC, have drafted an Insurance Climate Risk Disclosure Survey. The survey is a uniform tool that was developed to help regulators measure the impact of climate change on policyholders and insurer operations.

"We've taken some important first steps at the NAIC, but more can be done," Dilweg added. "We are encouraged that the Committee shares our common interest in having accurate, objective climate science to back up critical policy decisions."
Click HERE for the full text of Dilweg's testimony.

About the NAIC

Formed in 1871, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories. The NAIC has three offices: Executive Office, Washington, D.C.; Central Office, Kansas City, Mo.; and Securities Valuation Office, New York City. The NAIC serves the needs of consumers and the industry, with an overriding objective of supporting state insurance regulators as they protect consumers and maintain the financial stability of the insurance marketplace. For more information, visit www.naic.org.