Kreidler sends out Climate Risk Disclosure Survey to insurers

OLYMPIA - Washington state Insurance Commissioner Mike Kreidler sent out his annual Climate Risk Disclosure survey on June 30, requiring insurance companies with more than $100 million in written premiums in the United States in 2022 to respond.

“This survey is a continuation of the work my office, and my fellow insurance regulators, have done to strengthen the industry to meet the threats presented by climate change,” Kreidler said. “The information we gather in this survey will benefit both the industry and consumers in a meaningful way.”

The current version of the survey was developed by the National Association of Insurance Commissioners’ Climate Risk and Executive Committee Task Force, of which Kreidler is a vice chair.

It aligns with the Financial Stability Board’s Task Force on Climate-Related Financial Disclosure, the international standard for climate risk disclosure, and helps insurance regulators and the public better understand the climate-related risks to the U.S. insurance market.

Specifically, the Climate Risk Disclosure Survey provides:

• Enhanced transparency about how insurers manage climate-related risks and opportunities.

• Guidance on identifying good practices and vulnerabilities.

• A baseline supervisory tool to assess how climate-related risks may affect the insurance industry.

• Promotion of strategic management and shared learning for insurers to encourage continual improvement.

• A vehicle for better-informed collaboration among regulators and interested parties on climate-related issues.

• Alignment with international climate risk disclosure frameworks to reduce redundancy in reporting requirements.

The NAIC adopted the Climate Risk Disclosure Survey in 2010. In 2012, Washington, along with California and New York, first administered the survey to companies writing at least $300 million, and lowered the threshold to $100 million a year later. For reporting year 2021, 26 states and territories participated and more than 1,500 companies responded, representing nearly 80% of the national insurance market. 

Survey responses are due on August 31, 2023. Survey results will be available this fall on the California Department of Insurance website.