WASHINGTON – The U.S. Department of the Treasury’s Federal Insurance Office (FIO) has taken a “critical next step” in proceeding with its first-ever data collection from insurers to assess climate-related financial risk to consumers across the United States, according to the government.
“FIO’s data collection will obtain previously unavailable insurance data at a ZIP Code level on a consistent, granular, and comparable basis from the largest homeowners insurance providers that collectively underwrite around 70% of homeowners insurance premiums nationwide,” Treasury said. “These nationwide data are critical to understanding how climate-related financial risks impact individuals and families across state markets and the United States, particularly given recent insurer pullbacks and significant premium increases in several states. In 2022, insurance covered only 60% of $165 billion in total economic losses from climate-related disasters, affecting millions of Americans.”
The action, Treasury said, advances the proposal for data collection that FIO published in October 2022.
‘Streamlined & Refined’
“FIO has carefully reviewed the comments received and engaged with numerous stakeholders, including the National Association of Insurance Commissioners (NAIC) and state insurance regulators,” Treasury stated. “Based on these discussions, FIO has streamlined and refined its data collection request to facilitate a more effective implementation of the collection. The changes to the data collection proposal are intended to help establish a national baseline for analytics at a ZIP Code level, while also reducing burden on small insurers. FIO will continue its engagement with the NAIC, state insurance regulators, and other stakeholders on this initiative.”
In making the announcement, Treasury noted the data collection is part of FIO’s work in response to President Biden’s Executive Order on Climate-related Financial Risk, which called on FIO to “assess, in consultation with States, the potential for major disruptions of private insurance coverage in regions of the country particularly vulnerable to climate change impacts.’
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