DFS Climate Change Webinar Series - Insurance
New York Domestic Insurers’ Management of the Financial Risks from Climate Change - An Analysis of NAIC Climate Risk Disclosure Survey Responses and Other Reporting
DFS has issued a report on “New York Domestic Insurers’ Understanding and Management of the Financial Risks from Climate Change - An Analysis of NAIC Climate Risk Disclosure Survey Responses and Other Reporting.” The analysis covers 121 responses by insurers to the 2020 Survey and eight Task Force on Climate-Related Financial Disclosures reports submitted in 2020 by a total of 93 groups and non-affiliated companies, representing insurers with countrywide premiums ranging from $100 million to close to $100 billion. Survey questions cover how insurers incorporate climate risks into their governance, risk-management, and investment plans, as well as detail steps taken by insurers to engage key constituencies and policyholders on the topic of climate change.
Based on a framework that it developed, DFS rated insurers’ responses in one of four categories: “Yet to Start,” “Early Stage,” “Making Progress,” or “Good Progress.” DFS intends to continue reviewing insurers’ Survey responses and other disclosure materials to understand insurers’ overall status in identifying, assessing, and managing climate risks, identify good practices that can be shared with the industry, and support risk-based supervision. Insurers’ ratings will be used only for DFS’s supervisory purposes and will not be publicly disclosed.
An Analysis of New York Domestic Insurers’ Exposure to Transition Risks and Opportunities from Climate Change
The New York Department of Financial Services (DFS) and 2 Degrees Investing Initiative (2DII), an independent, non-profit think tank working to align the financial sector with international climate goals, hosted two webinars for New York domestic insurers to introduce the report “An Analysis of New York Domestic Insurers’ Exposure to Transition Risks and Opportunities from Climate Change” issued on June 10, 2021 by DFS in collaboration with 2DII.
The first webinar on Monday, June 21, 2021 provided an overview of the report, including methodology used to analyze insurers’ exposure to transition risks, New York domestic insurers’ aggregate exposure to transition risks, and investment-related strategies that insurers can consider to mitigate their transition risk exposure.
The second webinar on Monday, July 12, 2021 discussed how insurers included in the analysis might use the individual reports that were generated by 2DII and are housed on an interactive webpage.
No slides were used for this webinar.