What US Insurers Should Keep In Mind About Climate Change Regulations
There has been a marked increase in public announcements from regulators in recent months, both in the United States and internationally, relating to climate change and about embedding consideration of climate change-related risks into regulation of financial institutions.
To be sure, converting rhetoric, aspirations and proposals into tangible policy changes and new regulatory compliance requirements will take time, probably years, but now, in the wake of another year full of climate change news and severe weather events of all kinds around the country and world, that there is a trend seems clear enough. (And the Biden administration has signaled in recent days that climate change considerations will be included in the policymaking activities of every federal department and agency.)
While some insurers have well-developed, robustly funded and staffed functions to monitor and address climate change-related risks in their businesses, others that do not (particularly insurers that fall into the category of internationally active insurance groups (IAIGs)) would be well-advised to “kick it up a notch” at this time.
Indeed, “kicking it up a notch” may well be the central climate change message in 2021 for ALL businesses.