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11/1/2023 Treasury’s Federal Insurance Office Advances First Insurer Data Call to Assess Climate-Related Financial Risk to Consu… Treasury’s Federal Insurance Office Advances First Insurer Data Call to Assess Climate-Related Financial Risk to Consumers November 1, 2023 Data collection from insurers would begin next year, if approved WASHINGTON – Today, the U.S. Department of the Treasuryʼs Federal Insurance O ice (FIO) took a critical next step to proceed with its first-ever data collection from insurers to assess climate-related financial risk to consumers across the United States. FIOʼs data collection will obtain previously unavailable insurance data at a ZIP Code level on a consistent, granular, and comparable basis from the largest homeowners insurance providers that collectively underwrite around 70% of homeowners insurance premiums nationwide. These nationwide data are critical to understanding how climate-related financial risks impact individuals and families across state markets and the United States, particularly given recent insurer pullbacks and significant premium increases in several states. In 2022, insurance covered only 60 percent of $165 billion in total economic losses from climate-related disasters, a ecting millions of Americans. “Americans are facing growing challenges from extreme weather events caused by climate change,” said Secretary of the Treasury Janet L. Yellen. “The Treasury Departmentʼs insurer data collection is the first of its kind and will provide critical information at a local level to assess the increasing impacts of climate change on household budgets. The resulting data and analyses will help policymakers inform potential approaches to improving insurance availability and a ordability for consumers.” FIO today is providing public notice on its intent to proceed with the data collection, while also submitting the data collection request to the O ice of Management and Budget for approval and public comment. Todayʼs action advances the proposal for data collection that FIO published in October 2022. FIO has carefully reviewed the comments received and engaged with numerous stakeholders, including the National Association of Insurance Commissioners (NAIC) and state insurance regulators. Based on these discussions, FIO has streamlined and refined its data collection https://home.treasury.gov/news/press-releases/jy1867 1/2 11/1/2023 Treasury’s Federal Insurance Office Advances First Insurer Data Call to Assess Climate-Related Financial Risk to Consu… request to facilitate a more e ective implementation of the collection. The changes to the data collection proposal are intended to help establish a national baseline for analytics at a ZIP Code level, while also reducing burden on small insurers. FIO will continue its engagement with the NAIC, state insurance regulators, and other stakeholders on this initiative. The data collection is part of FIOʼs work in response to President Bidenʼs Executive Order on Climate-related Financial Risk, EO 14030 (May 20, 2021), which called on FIO to “assess, in consultation with States, the potential for major disruptions of private insurance coverage in regions of the country particularly vulnerable to climate change impacts.” The collection will also advance FIOʼs statutory mandates, including to monitor the extent to which traditionally underserved communities and consumers, minorities, and low- and moderate-income persons have access to a ordable insurance products and to monitor all aspects of the insurance industry. Copies of the current submission and request for public comments, FIOʼs October 2022 Federal Register notice and request for comments and instructions , and copies of the data collection form , are available through FIO Reports & Notices. For more information on FIO, see About FIO.. ### https://home.treasury.gov/news/press-releases/jy1867 2/2
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