November 16, 2021 Read More →

New York orders insurers to disclose exposure to climate-related risks

Bloomberg ($):

New York State’s financial regulator called on insurers to consider climate-related risks in their business planning and provide related disclosures.

The guidance published Monday by the Department of Financial Services directs insurers based in the state to account for their exposure to rising sea levels and climbing global temperatures. That includes disclosing climate risk and incorporating the dangers posed by climate change into risk-management frameworks.

“Climate change is an urgent issue that poses wide-ranging and material risks to the financial system,” DFS Acting Superintendent Adrienne Harris said Monday in a statement. “Insurers, which are uniquely impacted as climate change affects both sides of their balance sheets, also play a critical role in managing climate risks.”

The guidelines build on proposals outlined in March, adjusted through feedback from groups including insurers and climate experts. They arrive as regulators across the globe implement or consider implementing measures that would help to quantify how exposed financial institutions are to climate change.

[Max Reyes]

More: New York Regulator Wants Insurers to Disclose Climate Risks

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