New York directs insurers to disclose climate risks for first time
A key New York regulator Tuesday ordered insurers to take a harder look at how climate change will affect their operations and begin developing plans to disclose the related financial risks.
What the agency said: New York Superintendent of Financial Services Linda Lacewell outlined her department's expectations in a letter to all domestic and foreign insurers operating in the state. She said the firms should "start integrating the consideration of the financial risks from climate change into their governance frameworks, risk management processes and business strategies."
The agency said insurers should develop an approach to climate-related financial disclosure and consider working with the Task Force for Climate-related Financial Disclosures, which reports to G-20 leaders and is chaired by former New York Mayor Mike Bloomberg.
Why it matters: The move is the latest signal that regulators around the world are ramping up efforts to police financial firms for climate risks. The New York Department of Financial Services is addressing the issue as part of an international coalition of central banks and regulators known as the Network for Greening the Financial System.
“Mitigating the financial risks from climate change is a critical component of creating a stronger industry and a healthier and safer world for ourselves, our families, and future generations," Lacewell wrote. "There is no more time to wait.”
