Federal Insurance Office Requests Critical Climate Data from Insurers

WASHINGTON, Oct. 19 -- The Americans for Financial Reform posted the following news release:

The Federal Insurance Office (FIO) proposed new reporting requirements for insurers to collect geographical data on how climate change is affecting the availability and affordability of homeowners, multi-peril commercial, and fire insurance, with a lookback period of five years to assess trends. This is a critical-and long-awaited-first step to quantify the growing homeowners' insurance gap in the midst of worsening climate conditions.

The action follows a Spring 2021 Executive Order that directed FIO to assess the "potential for major disruptions of private insurance coverage in regions of the country particularly vulnerable to climate change impacts" and "gaps in supervision and regulation of insurers."

The resultant data will also help regulators understand the relationship between historic redlining and climate vulnerability, which is leading to financial impairment that disproportionately harms BIPOC households and communities, as well as the growth of systemic financial risk due to climate change.

"We commend the Federal Insurance Office for taking this critical step to assess where and how climate change is impacting insurance availability, costs, and coverage," said Caroline Nagy, senior policy counsel at Americans for Financial Reform Education Fund. "As we face increasingly severe weather and fire damage caused by climate change, this data will help us better understand the systemic risks facing the insurance sector and protect against discriminatory business practices."

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Original text here: https://ourfinancialsecurity.org/2022/10/news-release-federal-insurance-office-requests-critical-climate-data-from-insurers/