A recently released National Association of Insurance Commissioners (NAIC) report details state insurance regulators’ efforts to manage climate-related risks while also promoting resiliency.
The report, “Adaptable to Emerging Risks: The State-Based Insurance Regulatory System is Focused on Climate-Related Risk and Resiliency,” examines how state insurance regulators are at the forefront of natural catastrophe preparedness and response, protecting policyholders and maintaining insurance markets.
“When disaster strikes, long after the news coverage dies down and national attention turns elsewhere, state insurance regulators remain on the ground helping policyholders and local communities recover in the wake of climate-related loss,” NAIC CEO Mike Consedine said. “This is personal for NAIC members. They are part of the communities where these events take place,” NAIC CEO Mike Consedine said.
Consedine noted the NAIC and state insurance regulators are committed to addressing challenges, utilizing existing tools and creating new ones, and collaborating to broach climate-related risks domestically and globally.
The prime pillars of insurance regulation, per the NAIC, are financial risk analysis; insurance market availability and affordability; and consumer education and outreach – with the collaborative focus being climate-related risks financial impact measurement; climate risk management identification; utilizing mitigation as a means of reducing the protection gap; bolstering consumer and stakeholder awareness; and fostering domestic and global partnerships.