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NAIC Establishes Task Force on Climate Change

The National Association of Insurance Commissioners voted unanimously during its Spring meetings to establish a task force to examine the impact of climate change on...
March 21, 2006

The National Association of Insurance Commissioners voted unanimously during its Spring meetings to establish a task force to examine the impact of climate change on the U.S. insurance industry and on insurance consumers. The task force will look at how a warming climate may affect the availability and affordability of insurance for consumers and the financial health of insurance companies. The task force will also consider actions necessary to enable state regulators and insurers to mitigate and otherwise respond to these problems.

The task force will be led by Tim Wagner, director of the Nebraska Department of Insurance, and Mike Kreidler, insurance commissioner for the State of Washington.

"It's becoming clearer that we are experiencing more frequent and more powerful weather events that pose huge challenges for the insurance industry," Wagner said. "The impacts are being felt on our coasts and in the interior U.S. We're seeing all kinds of extreme weather in the Great Plains states, including drought, tornadoes, brushfires and severe hailstorms. I am glad the NAIC is taking proactive steps to deal with this key issue." Kreidler said the task force will look at whether insurers have adequately factored these occurrences in their financial and risk models.

Regulators Establish Task Force on Climate Change (Insurance Journal 3/14/06)