Reinsurance Association Comments on Treasury's Report on Climate Risks to Financial Stability

WASHINGTON, Oct. 23 (TNSRes) -- The Reinsurance Association of America issued the following news release on Oct. 22, 2021:

The Reinsurance Association of America (RAA) commented today on the Department of the Treasury's report released yesterday that declares climate change an emerging risk to financial stability. The report also calls for enhancing public climate risk disclosure.

Treasury's "Report on Climate-Related Financial Risk, 2021" was required by an Executive Order issued by President Biden and makes it a priority to gather more data to better understand how unexpected severe weather events could adversely impact financial markets.

Frank Nutter, President of the Reinsurance Association of America, commented, "Reinsurers are a critical sector in the financial services industry and for decades have been providing risk transfer for public and private insurers to assist them in the management of the financial impact of climate and extreme weather risk.

Reinsurers and insurers have a financial stake in appropriate climate risk assessment. It is essential that our industry understand global and regional climate impacts and developing scientific assessment of a changing climate."

Mr. Nutter concluded, "We recommend that Federal officials work closely with the states and the National Association of Insurance Commissioners (NAIC) in gathering information on climate and weather exposure."