The U.S. Department of the Treasury’s Federal Insurance Office (FIO) issued a proposal on Tuesday that would facilitate the collection of data from insurance companies to help it assess climate-related financial risk.
The proposed plan calls for the collection of current and historical underwriting data on homeowners’ insurance from property and casualty insurers. The data collection would be aggregated at the ZIP Code level for insurers and would not involve data on individual homeowners or other insured entities.
The proposal will provide the FIO with comparable insurance data needed to assess the potential for major disruptions of private insurance coverage in regions of the country that are particularly vulnerable to the impacts of climate change. It would also help the FIO assess both the availability and affordability of insurance for Americans.
“Today’s action by the Federal Insurance Office is an important step in determining how Americans are being affected by the increasing costs of climate change,” Treasury Secretary Janet Yellen said. “The recent impacts in Florida from Hurricane Ian demonstrate the critical nature of this work and the need for an increased understanding of insurance market vulnerabilities in the United States. FIO’s data collection will add to the work of regulators and policymakers across the Administration to assess climate-related risks to the financial system, the U.S. economy, and the American people.”
The FIO is currently seeking public input on the proposal. The comments will inform the FIO’s work in responding to President Biden’s Executive Order on Climate-related Financial Risk. Comments are due within 60 days of publication in the Federal Register.