Download This PaperInsights from the Mandatory Insurer Climate Risk Disclosure Survey in the U.S.
Risk Management and Insurance Review, https://doi.org/10.1111/rmir.12237
20 Pages Posted: 27 Dec 2022 Last revised: 20 Mar 2023
Date Written: December 12, 2022
Abstract
We document the implementation of the Insurer Climate Risk Disclosure Survey in the U.S. and provide an overview of its historical development since 2009. By 2020, the Survey is mandatory in 15 states or jurisdictions for insurers that meet the premium threshold. We find that the coverage of the Survey has reached 80% of property & liability premiums and close to 100% of life premiums, but the majority of U.S. insurers -- especially small or less diversified insurers who are most vulnerable to climate risk -- are not covered by this survey. We highlight research opportunities exploiting the unique institutional settings of the Survey while also documenting the caveats of the Survey.
Keywords: Climate Risk, Disclosure, Insurance Industry
JEL Classification: G22, G28, Q01, Q58
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