Minnesota has joined California, New York, Connecticut and Washington state in requiring insurers to respond to the Climate Risk Survey adopted in 2009 by the National Association of Insurance Commissioners (NAIC).
Department of Commerce Commissioner Mike Rothman said his agency has notified insurers in Minnesota of the need to participate in the survey, which is due August 30, 2013.
This year, the initiative was expanded to include all companies licensed in Minnesota writing more than $100 million in direct written premium to respond to the climate change survey – effectively doubling the number of responding companies. The expansion of the survey will allow participating states and consumers to have a better picture of how insurers are responding to climate change.
“Minnesota is joining forces with key states to help evaluate the impact of climate change on the insurance industry,” said Rothman. “This survey will help us get a clearer picture of how insurers are addressing the risks and the best ways to adapt to our changing climate.”
“Climate change is a significant threat to the financial health of the insurance industry, and to the availability and affordability of insurance for consumers,” said Andrew Logan, insurance program director for Ceres, which supports the initiative.
“Left to its own devices, the insurance industry is likely to be reactive, pulling back from high risk areas and harming consumers,” Logan said. “This action by insurance regulators will encourage insurers to be proactive, thinking through how they can work with at-risk consumers and communities to make them more resilient in the face of climate change.”
Prior survey results are located on the California Department of Insurance website. Minnesota, California, and the other states sponsoring this data collection will continue to work cooperatively with the NAIC and other NAIC member states and jurisdictions by sharing the survey result data which is due Aug. 30, 2013.
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