Conn. Insurers Required to Participate in Climate Risk Surveys

Connecticut Insurance Commissioner Thomas Leonardi announced on July 17 that Conn.-based insurance companies will now be required to complete the annual Climate Risk Survey that was initially adopted in 2009 as a voluntary report by the National Association of Insurance Commissioners (NAIC).

Connecticut and Minnesota last month joined three other states around the country – California, New York and Washington – that have already made the survey response mandatory. All licensed companies writing over $100 million in premium will be required to participate. In Connecticut, some 110 insurance companies meet that criteria and will be required to complete the survey.

California, New York and Washington have had reporting requirements since 2009 for insurers writing more than $300 million in premium. This will be their first year in which the lower participation threshold of $100 million in premium would be applied to insurers. The new threshold could double the number of respondents, according to regulators.

“As regulators, it is important that we identify those climate-related factors that can affect the marketplace and in particular the availability and cost of insurance. These surveys give us another window into the industry’s risk management practices as they relate to changing weather patterns,” Leonardi said. “This is also a transparent process and the surveys will be made available to the public.”

The eight-question survey must be completed and submitted to regulators by Aug. 30, 2013. The survey requires insurers to provide a description of the steps taken with respect to climate-related risks.

Survey topics include helping policyholders mitigate potential losses, identifying geographical areas of business at risk and describing the use of computer modeling.

Carriers are also asked to summarize any climate-related policy the company may have with respect to investment management.

Topics Trends Carriers Connecticut Climate Change