NAMIC: Federal Climate Disclosure Bill Ignores State Regulators, Industry Efforts

INDIANAPOLIS, Indiana, July 28 -- The National Association of Mutual Insurance Companies issued the following news release on July 27, 2023:

Legislation to impose increased federal oversight and reporting related to climate change and investment practices for the property/casualty insurance industry would needlessly increase costs for consumers and - at best - duplicate the work already being performed by state regulators, the National Association of Mutual Insurance Companies said today.

Introduced by Reps. Adam Schiff, D-Calif., and Rashida Tlaib, D-Mich., the legislation would require certain insurers to make annual disclosures of climate-related investments to the Federal Insurance Office, the Financial Stability Oversight Council, and the Office of Financial Research. However, insurance is regulated at the state level in the U.S., and such disclosures are already required by state regulators, including investments in oil and gas production.

"State regulators have been examining the impact of climate change on insurers and the insurance marketplace for years, and disclosure has long been a part of that," said Jimi Grande, senior vice president of federal and political affairs for NAMIC. "Federal calls for insurers to publicly disclose investments is a red herring designed to score political points and does nothing to help consumers."

NAMIC understands addressing the issues presented by climate change is a complex undertaking. Instead of trying to scapegoat insurers, the association contends, these lawmakers should recognize that making progress will require buy-in and flexibility from different market participants, regulators, and policymakers to further protect policyholders and build a more resilient environment.

"There is no industry more affected by climate change in America or more sympathetic to the victims of the increasing natural disasters than the insurance industry," Grande said. "America's insurers pay billions of dollars every year to help their policyholders recover from extreme weather, and they will be there for policyholders when the next disaster strikes. We also continue to press Congress to fund more mitigation projects to reduce risk and better protect America's communities from future extreme weather events. Climate change is a problem that affects everyone; needless legislation and political grandstanding aren't part of the solution."

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NAMIC membership reflects many of the country's largest national insurers as well as regional and local mutual insurance companies on main streets across America. NAMIC members write $391 billion in annual premiums and account for 68 percent of homeowners, 56 percent of the automobile, and 31 percent of the business insurance markets.

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Original text here: https://www.namic.org/news/releases/230727mr01