The California Department of Insurance (the “CDI”) has issued a press release announcing that it has joined with the Washington and New York State Insurance Departments to require insurers to respond to the Climate Risk Survey adopted by the National Association of Insurance Commissioners (the “NAIC”) in 2009.  The three states will require that insurers writing in excess of $300 million in direct written premium respond to the survey, which contains eight questions designed to provide regulators with substantive information about the risks climate change poses to insurers, and the actions insurers are taking in response.  According to the NAIC, disclosure of climate change risks is important because of the potential impact of climate change on insurer solvency and insurance availability and affordability across all major categories of insurance.

Washington State Insurance Commissioner Mike Kriedler tied the multi-state effort to recent weather patterns, stating, “We’re seeing the same severe climate trends of recent years continue into 2012.  Our job as regulators is to confirm that companies are adequately addressing the impact of climate change on their risk profiles and ensure that the public has access to insurance to cover these severe weather events.  The data from this survey will give us a real time benchmark for how insurers are preparing for the impact of climate change.”

To view the CDI press release, click here.