American insurers call on regulators not to mandate disclosure of climate risk

The American Insurance Association (AIA) has called on U.S. state insurance regulators not to “mandate” disclosure of climate risk.
In a 16-page white paper, made public in December 2007, the National Association of Insurance Commissioners (NAIC) devotes about 16 paragraphs to a discussion about whether U.S. insurance companies should be required to disclose a routine and ongoing analysis of how climate risk will affect their business.
AIA in a recent letter urged regulators not to mandate insurers to report climate risk exposure, but rather closely monitor voluntary reporting already being done by the industry, in addition to reporting already required by the Securities and Exchange Commission.
“Regulators acknowledge through statements that a lot of activity is occurring and is evolving very rapidly in the area of climate risk disclosure,” said David Snyder, AIA vice president and assistant general counsel. “We see no need in the NAIC taking further action on fashioning its own, and potentially duplicative and burdensome disclosure process.”
The letter also urges the NAIC and regulators to support risk-based pricing and industry efforts to improve land use, introduce new “green” insurance products and strengthen building codes.