The Climate and Resiliency (EX) Task Force is organized around four workstreams. The workstreams are broken out by tab below to showcase the activities and topics covered under each group.
To outline the work state insurance regulators have been doing for years to regulate the industry and protect consumers, the National Association of Insurance Commissioners (不良研究所官方) released the report, Adaptable to Emerging Risks: The State-Based Insurance Regulatory System is Focused on Climate-Related Risk and Resiliency.
A progress report detailing activities of the Task Force can be viewed here, 不良研究所官方 Progress Report
The Pre-Disaster Mitigation Workstream, led by Director Barbara Richardson (AZ) serves to accomplish the following:
- Participate in multi-agency/stakeholder educational efforts on coverage gaps and pre-disaster mitigation related to climate risks.听
- Incentivize insurer recognition of enhanced building codes in underwriting and rating.
- Continue consumer education and awareness on coverage gap and pre-disaster mitigation related to climate risks and natural catastrophe exposure, including possible strategic partnerships.
A听list of mitigation measures was developed to describe actions policyholders can take to reduce their risk exposure for individual properties as well as state requirements for mitigation discounts.
In late July, the Pre-Disaster Mitigation Workstream and the Center for Insurance Policy & Research sponsored an educational event at the Insurance Institute for Business & Home Safety (IBHS). During the event, regulators had a hands-on visit to the IBHS Hail Lab, witnessed a live wildfire demonstration, learned about the main drivers of convective storms & wildfire events and the latest science for mitigating them, and discussed key regulatory issues stemming from these events related to consumer complaints, property coverage issues, fraud, and consumer outreach.
For more information about this event and its key outcomes and next steps, contact CIPR Director Jeff Czajkowski at jczajkowski@naic.org.
Presentation slides from the meeting can be found here:听
Science of Severe Convective Storm
Risk and Mitigation Consumer Messaging
不良研究所官方 Resources and Mitigation Messaging
听
MEETING RECORDINGS
On June 3, 2022, the Workstream heard a presentation from Jaelith Hall-Rivera, Deputy Chief State and Private Forestry for the U.S. Forest Service. Jaelith discussed the structure of organizations and resources that support fuel reduction and prescribed fire as well as how communities can create resilient landscapes and build fire adapted communities. The recording is available on demand .听USForestService_Slides.pdf
On May 17, 2022, the Workstream heard a presentation from Lenya Quinn-Davidson, Area Fire Advisor for the University of California Cooperative Extension and Director for the Northern California Prescribed Fire Council. Lenya spoke about vegetation management through prescribed fire, including opportunities, challenges and regional differences with implementation throughout the country. The recording is available on demand .听FireCouncil_Slides.pdf
The Workstream co-hosted a building code and mitigation workshop on March 17, 18 and 19听in conjunction with CIPR and the Federal Alliance for Safe Homes (FLASH).听
The slides and recorded sessions are available here:
Day One: Focus on Building Codes
Slides听|听听
Day Two: Focus on Mitigation
Slides听|听
Day Three: Focus on Resiliency Funding
Slides听|听
RESOURCES
Center for Insurance Policy & Research State Resiliency Map - this page provides links to resources within each State Department of Insurance including disaster risk management and peril-specific information.
不良研究所官方 and Federal Resources on Resiliency, Disaster Preparedness and Response - this page provides links to pertinent information created by the 不良研究所官方 as well as Federal Agencies.
Catastrophe Resource Center - this page includes disaster preparation and response documents, consumer assistance documents, 不良研究所官方 disaster-related workshop materials, data call information, and bulletins that can be repurposed by a DOI for immediate use.
International Code Council (ICC)
ICC develops model standards for building codes. They provide a family of codes for various uses including, not limited to, building (IBC), residential (IRC), energy, and Wildland Urban Interface Code (WUI). To learn more about the family of codes or the 3 year development lifecycle visit: .
To learn more about the codes in your state visit: .
Federal Emergency Management Agency (FEMA)
"Building Codes Save: A Nationwide Study of Loss Prevention," November 2020. The study shows that modern building codes lead to major reduction in property losses from natural disasters.
| Findings of Modeled I-Code Savings | Number of Post-200 Structures | Money Saved, annual average |
| Floods | 786k | $484 million |
| Earthquakes | 2.4m | $60 million |
| Hurricane Winds | 9.2m | $1.1 billion |
National Institute of Building Sciences (NIBS)
NIBS Mitigation Saves: 2019 Report. Report findings show:
Adopting model codes save $11 per $1 spent.
Exceeding codes save $4 per $1 spent.
Consumer Information
A took for consumers to lookup the building codes used in their location:
Industry Information
ISO National Building Code Assessment Report, Building Code Effectiveness Grading Schedule (2019 Edition). Through the BCEGS program, ISO assesses the building codes in effect in individual communities and how those communities enforce their building codes.
FEMA Hazard Mitigation Assistance Division 2020 Year in Review, 2020.
The report provides a list of federal funding programs, tools and resources and success stories for the programs use in 2020.
FEMA Mitigation Planning Success Stories
National Institute of Building Sciences (NIBS)
NIBS Mitigation Saves: 2019 Report. Report findings show:
Federal mitigation grants save $6 per $1 spent.
Private sector building retrofit saves $4 per $1 spent.
Mitigating infrastructure saves $4 per $1 spent.
National Institute of Building Sciences (NIBS)
A Roadmap to Resilience, August 2020. The report spells out concrete incentives that reduce owner costs to make new and existing infrastructure more disaster resilient. Incentives include mortgage discounts, insurance premium discounts, tax incentives, grants, and other inducements. This roadmap was developed by the Multi-Hazard Mitigation Council of the National Institute of Building Sciences.
State Regulator Policy Avenues and Resiliency Playbook (不良研究所官方)
Provides research and a framework for funding resiliency through grants and incentives. Includes a list of state actions regarding resiliency programs, insurance rate reduction and premium discounts.
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Consumer Information
Community Resilience Planning
Protect your home checklist
IBHS Preparedness Tips to Protect Homes and Businesses from Many Perils
不良研究所官方 Consumer Resources
/consumer.htm
The Solvency Workstream serves to accomplish the following:
- Recommend enhancements to regulator solvency tools, including a risk framework for addressing wildfires and flood within the property/casualty (P/C) risk-based capital (RBC) formula, modifications to the Own Risk and Solvency Assessment (ORSA), the听Financial Analysis Handbook and the听Financial Condition Examiners Handbook.听Develop climate risk stress tests and scenario analysis to evaluate potential financial exposure to both the physical and transition impacts of climate change. Provide scenarios, assumptions, and parameters for the stress testing exercise.
- Determine methodology for quantifying insurers' exposure to climate-related investments.听
In support of its goals, on May 23, 2022, the Solvency Workstream adopted three referrals.听
- The first suggests the Financial Analysis Solvency Tools (E) Working Group consider modifications to incorporate particular concepts as it pertains to climate risk and offers high-level principles to consider and develop, as appropriate, for inclusion in the Financial Analysis Handbook. ReferraltoFASTWG.pdf听
- The second proposes for the Financial Examiners Handbook (E) Technical Group's consideration, a list of enhancements to the听Financial Condition Examination Handbook.听ReferraltoFEHTG.pdf
- The third offers a list of possible enhancements to the Own Risk Solvency Assessment (ORSA) Guidance Manual presented as high-level principles for the ORSA Implementation (E) Subgroup to consider and develop, as appropriate.听ReferraltoORSASubgroup.pdf
MEETING RECORDINGS
No Recording at this Time.
RESOURCES
In April 2023, UC Berkeley published a Scenario Analysis Design Guide听commissioned by the California Department of Insurance (CDI) to identify options available and offer recommendations to the CDI as it considers new scenario analysis and stress testing exercises.听
Prior to that, the CDI engaged 2 degree Investing Initiative to conduct for the for the insurance sector.听
听
IAIS 2021 Global Insurance Market Report (GIMAR)听Special edition on climate risk.
No comments are requested at this time.
The Climate Risk Disclosure Workstream, led by Commissioner Andrew R. Stolfi (OR), serves to accomplish the following:
- Consider modifications to the Climate Risk Disclosure to align with Task Force on Climate-related Financial Disclosures (TCFD) and promote uniformity in reporting requirements.
MEETING RECORDINGS
The workstream met to听hear a presentation from Ceres on their report on climate risk disclosure survey analysis.
Meeting recording
The workstream met to hear presentations on navigating climate risk disclosure for small to medium-sized companies. The workstream heard presentations from David Carlin (United Nations Environment Programme Finance Initiative), Steven Rothstein (Ceres), Olivia Brindle (The Fidelis Partnership), and Gaby Polanco-Sorto (Gore Mutual Insurance).
Recording link
The fifth in a series of meetings hosted by Ceres aimed to assist insurers who will be required to submit a revised Climate Risk Disclosure Survey aligned to the TCFD in 2022 is available below.
Recording link
The fourth in a series of meetings hosted by Ceres aimed to assist insurers who will be required to submit a revised Climate Risk Disclosure Survey aligned to the TCFD in 2022 is available below.
Recording link
The second in a series of meetings hosted by Ceres aimed to assist insurers who will be required to submit a revised Climate Risk Disclosure Survey aligned to the TCFD in 2022 is available below.听
Recording link
Presentation materials are available here
Starting this year, hundreds of U.S. insurance companies will be required to submit climate risk reports based on the Financial Stability Board鈥檚 Taskforce on Climate-Related Financial Disclosures. The new survey, building off of more than a decade of climate risk reporting under the National Association of Insurance Commissioner鈥檚 (不良研究所官方) Climate Risk Disclosure Survey, will be required by all licensed insurers in the 15 participating states/territories with at least $100 million in direct written premium. To support insurers responding to the updated requirement, Ceres in conjunction with the United Nations Environment Program Finance Initiative, is presenting a series of webinars designed to provide background insights for insurance companies completing a TCFD-aligned report for the first time. Over the past few years Ceres has developed expertise in the TCFD reporting framework as more and more businesses have produced reports.
Recording link
Presentation materials are available here
June 9 Principles for Responsible Investment and Zurich听
Recording link
Presentation materials are available here.
听
The workstream met to 1) hear the history and administration/collection process of the 不良研究所官方 Climate Risk Disclosure Survey,听2) hear a presentation regarding听the CIPR's report听Assessing 不良研究所官方 climate risk disclosure data, and 3) hear a presentation regarding phase 1 of the American Academy of Actuary's research on the 不良研究所官方 Climate Risk Disclosure Survey.听
Webex Recording:听
Materials
听
The workstream met to 1) hear a presentation from Principles for Responsible Investment's climate reporting framework, and听2) hear a presentation on the CDP's Climate Disclosures and Related Analytics.听
Webex Recording:听
Materials
The workstream met to 1) hear a presentation from CERES regarding climate risk disclosure insurance recommendations, 2) hear a presentation on Zurich's climate risk disclosure process and preference, and 3) hear a presentation on AIG's climate risk disclosure process and preference.
Webex Recording:听
Materials
The workstream met to 1) hear a presentation from RBC Global Asset Management Inc. regarding use of climate disclosures, 2) hear a presentation from Sustainalytics regarding their perspective of the information received through the 不良研究所官方 Climate Risk Disclosure Survey, and 3) discuss听questions being contemplated by the workstream to inform their future recommendations to the Task Force. Unable to share webex recording due to presenter legal constraints.
Materials
RESOURCES
October 2022,听
July 2022,
不良研究所官方 Climate Risk Disclosure Survey/TCFD Comparison
CIPR Report听Assessment of and Insights from 不良研究所官方 Climate Risk Disclosure Data
Society of Actuaries TCFD
American Academy of Actuaries听
International Actuarial Association
October 2022,
April 2022,
NOTICES
In support of the newly updated Climate Risk Disclosure Survey, a frequently asked questions document has been developed and is available here.
On March 21. 2022, the Climate and Resiliency (EX) Task Force adopted the revised Climate Risk Disclosure Survey, which was subsequently adopted by the Executive (EX) Committee on April 6, 2022 with no changes.听
On March 11, 2022, the Climate Risk Disclosure Workstream adopted the revised Climate Risk Disclosure Survey which was also adopted, without change, by the Climate and Resiliency (EX) Task Force on March 21, 2022 and the Executive (EX) Committee on April 6, 2022.听
On Feb. 28, 2022, the Climate Risk Disclosure Workstream of the Climate and Resiliency (EX) Task Force took additional comments on their latest draft Climate Risk Disclosure Survey. Comment letters received are below:
ACLI_Comments.pdf
ACLI_Redline.pdf
APCIA.pdf
CERES.pdf
NAMIC.pdf
On Nov. 15, 2021, the Climate Risk Disclosure Workstream of the Climate and Resiliency (EX) Task Force exposed the draft proposed redesigned Climate Risk Disclosure Survey for comment. The comments received were discussed on their open virtual meeting held on Wednesday, January 26, 2022. Comment letters received are below:
AcademyofActuariesReport.pdf
AcademyofActuariesComments.pdf
ACLI.pdf
ACLIRedline.docx
APCIA.pdf
BerkeleyLawCLEE.pdf
CERES.pdf
NAMIC.pdf
PRI.pdf
PublicCitizen.pdf
RAA.pdf
Transamerica.pdf
On Feb. 17, 2021, the Climate Risk Disclosure Workstream of the Climate and Resiliency (EX) Task Force requested comments on its听guiding questions to determine objectives of 不良研究所官方 Climate Risk Disclosures. Responses received by comment letter and a compilation of all responses received are below:听
APCIA Letter
CAP Letter
CEJ Letter
Ceres Letter
Insure our Future Letter
NY DFS Letter
SASB Letter
The Innovation/Technology Workstream serves to accomplish the following:
- Apply technology, such as early warning systems and predictive modeling tools, to understand and evaluate climate risk exposures.
MEETING RECORDINGS
Presentation from the National Oceanic and Atmospheric Administration (NOAA) regarding early warning systems and risk communication. Recording is available听. Presentation slides are available here.
RESOURCES
The Technology Workstream ushered a proposal for the 不良研究所官方/CIPR to create a Catastrophe Modeling Center of Excellence (COE). The Technology Workstream worked with the Solvency Workstream and the Pre-Disaster Mitigation Workstream in support of this initiative. If adopted, the role of the COE would be to 1) facilitate insurance department access to catastrophe modeling documentation and assistance distilling the information, 2) provide general technical education/training materials on the mechanics of commercial models and treatment of perils and risk exposures, and 3) conduct applied research analysis utilizing various model platforms to proactively answer the regulatory 鈥渟o what鈥 questions that may need to be addressed for regulatory resilience priorities. It is important to note that the support services offered through the COE will not take the place of individual state department of insurance activities involving CAT models such as model and rate filing review, nor would the COE approve vendor models.
Is the intent for the COE to become the primary point of contact between state insurance regulators and modelers?
No. As stated in the proposal, 鈥渋dentified support services will not be taking the place of state DOI activities involving CAT models, such as model and rate filing reviews, nor will the CAT Modeling COE be approving vendor models.鈥 However, we do envision the COE providing access to CAT modeling expertise to support state insurance regulator understanding, training, etc.
Will state insurance regulators continue to be open to discussions with modelers (and insurers) about models?
Yes. In fact, the COE will seek to improve communication between state insurance regulators and modelers/insurers, supplying state insurance regulators with expertise and information to help facilitate such discussions.
How will the COE engage with interested stakeholders to remain transparent?
Most 不良研究所官方 support resources interact with a committee for reporting and oversight. In this instance, at least for now, we propose that the catastrophe resource center will report to the Technology Workstream under the Climate and Resiliency (EX) Task Force, as well as coordinate with the Property and Casualty Insurance (C) Committee.
How will the COE work to ensure impartiality of vendor models?
The COE will make every effort to engage with all vendors willing to participate for all perils with available technical documentation. Furthermore, the COE will establish a governance structure to ensure that partiality is not provided to any model or vendor.
Would the COE be engaging to connect learnings from the CAT model to specific insurer rate-making, solvency, and/or business鈥攊.e., strategic, reinsurance, claims management鈥攄ecisions?
The COE support services will not take the place of state DOI activities involving CAT models, such as model and rate filing reviews, nor will the CAT Modeling COE be approving vendor models. The COE will work to understand models objectively from a general sense, not for individual rate filings or solvency assessments. We acknowledge that each insurer has their own risk profile that would need to be considered on an individual basis, which is outside the scope of the COE.
Would the kind of information the COE conveys be facts-based or would it include opinions or analysis?
The information provided to the state DOIs would be fact-based with relevant objective analysis, as requested. Providing this type of information to states highlights the importance of the placement of the COE within the 不良研究所官方鈥檚 independent research center, the CIPR.
What are regulatory 鈥渟o what鈥 questions in support service #3 of the proposal conducting applied research analysis?
State insurance regulators are responsible for maintaining well-functioning competitive insurance markets. Forward-looking models can be utilized to help analyze market performance, especially regarding the need for improved resilience. As stated in the proposal, CAT models are tools for catastrophe risk assessment. State insurance regulators can apply these tools in much the same way as the industry, albeit for regulatory resilience priorities. For example, models can be used to identify high-risk areas and where proliferation of home hardening activities can improve resilience to natural hazards, including hurricane, flood, severe convective storm, tornado, wildfire, and earthquake. Such mitigation activities are critical to reduce probable losses. Lower losses over time can improve the availability and affordability of coverage in the future. Applied research utilizing CAT models can demonstrate the economic value of mitigation activities. One description provided via public comments that we considered useful is, 鈥渃onducting applied research analysis that utilizes or analyzes the potential to utilize CAT models to further public and private risk mitigation and resiliency efforts; benefits and opportunities at the individual consumer or business; or public agency at the community, regional, state, or national level.鈥
Regarding conducting applied research analyses utilizing CAT models, we would like to understand the research and support expectations from the COE on modelers.
We envision working with modelers on applied research activities as applicable. We are requesting funding to allow for modeler engagement.
Depending on the expected level of granularity for COE work, additional questions may be relevant, such as whether the COE (不良研究所官方/CIPR) would need to be prepared to go to a hearing to testify or respond to discovery?
It is not anticipated that the COE would maintain granular information about individual insurer use of CAT models. The level of detail would be around the actual CAT model to provide education and training to state DOIs.
Will the COE be used to conduct research and analysis into the markets for CAT models. Will conflicts of interest or market failures distort the use of CAT models?
No. It is not envisioned that the COE would set out to conduct this type of research and analysis.
Given the complexity of models and breadth of expertise required to build and maintain them, there is a risk that any third party cannot adequately communicate the nuances and justification of models. Will the COE plan to coordinate model presentations from the modelers, rather than only relaying this information second-hand?
Yes. The COE would plan to coordinate model presentations from modelers.
How will information, observations, and/or questions about models be conveyed to state insurance departments? What kind of output will be generated?
We plan to hire a relationship manager responsible for communicating with the CAT model vendors and state insurance regulators. A regulator-only technology platform will help facilitate information sharing with state insurance regulators. Research output could take multiple forms depending upon the nature of the analysis undertaken.
What kinds of data fields will be included? Will others provide input into the design?
The data fields selected would be contingent on the models being used and the research project under consideration. Data fields would follow from model inputs and outputs.
Will the COE reviews and/or output be designed to be geography-specific?
Yes. That is possible.
Once a model has been reviewed, what renewal process is envisioned?
Models will not be reviewed, nor would they be posted on the state insurance regulator-only website. However, model technical documentation and information will be updated as new versions of the models are released.
How will the COE safe-guard intellectual property of the participating CAT model vendors?
All modeling documentation, access, and usage will be centralized and monitored through the COE via legally binding data use agreements. The 不良研究所官方 has an extensive track record of experience in collecting and protecting proprietary information. The actual models will not be posted on the state insurance regulator website, only the model documentation will be posted.
Will modelers engage in discussions with the COE about specific models? Do you expect insurers would be involved in model-related discussions?
Yes. The COE would be engaged with modelers on the modeling technologies and inputs in a similar fashion as insurers and reinsurers and have access to the same modeling documentation to develop internal expertise. It is possible that insurers could be involved in model-related discussions with the COE, but the COE will not review individual insurer鈥檚 use of models.
Is the CIPR planning to license and use modeler software or engage in paid consulting studies for their research and development of processes?
Yes, depending on COE resources and the specific research use case. The CIPR would be willing to either license modeler software and/or engage in paid consulting studies for research and educational/training purposes, as directed by the appropriate 不良研究所官方 authorities.
How will results and underlying assumptions from licensed models be communicated to state insurance regulators?
Any use of a licensed model, including distribution of modeled results, would be subject to the model license agreement and/or model vendor negotiated research consulting contract. Underlying assumptions from the various models utilized would be collected via the model technical documentation as part of the model vendor data use agreement. Note that it is possible that the model technical documentation, including underlying model assumptions, could be collected through a COE data use agreement without an associated model-based research project. If we were to license a model, the actual model would not be posted on the state insurance regulator-only website.
Will modelers be involved in establishing workflows, best practices, agendas, and expectations of the COE, including timing?
We anticipate that modelers will be actively engaged with the COE staff, advising on these items as appropriate.
How many vendors is the COE considering supporting?
The COE will not be 鈥渟upporting鈥 vendors, but rather the COE will collect model documentation and engage with model vendors. The COE will engage with any model vendor serving insurance markets where the information is relevant to state insurance regulators.
Does the COE anticipate looking to external experts for some of the implementation or ongoing work?
Yes. External collaboration would be welcome, whether that be with industry experts, public agencies, or the academic community.
How many states do you expect to be interfacing with the COE?
The COE will be a resource of the 不良研究所官方 potentially interfacing with all 56 jurisdictions.
Beyond recruiting for the identified new roles of CAT modeling relationship manager and CAT model research analyst, how many people at the 不良研究所官方/CIPR will be contributing to COE activities? Do you expect that to change over time?
The CIPR director, the 不良研究所官方 solvency enterprise risk management (ERM) advisor, and potentially Property and Casualty Insurance (C) Committee staff support will have a role in supporting the work of the COE. We anticipate that additional technical and administrative support resources may be necessary as the workload and demand for services evolve with demonstrated success.
Will the staffing level proposed by the 不良研究所官方 be able to provide meaningful analysis in the broad category of catastrophe modeling?
Prior to the creation of the COE, CIPR and 不良研究所官方 staff have provided meaningful analysis on wildfire CAT modeling and applied wildfire resilience research. We aim to build off this success and need to start somewhere. Every little bit helps for the states, as stated by one industry commenter, 鈥淸t]he staffing issues mentioned above regarding experts at the 不良研究所官方 are even larger for state insurance departments. Most states are not going to have enough or the right staff to review these models.鈥疶hey will have to rely on others to evaluate catastrophe model validity, and most likely will have to rely heavily on the decisions and evaluations made by others.鈥
Have long-term plans been prepared? Are there budget implications?
No long-term plan has been developed for the COE. The expenses associated with the COE would be subject to the 不良研究所官方 budget process and have no special assessments or fees for service.
The Innovation Workstream has been rolled into the Technology Workstream.
MEETING RECORDINGS
Presentation from AXA, Guy Carpenter and Raincoat regarding Tripartite Project in Mexico, providing insurance access to small farmers through a public-private partnership, utilizing a parametric solution to trigger payment.
Presentation from Guy Carpenter regarding community-based insurance.
Presentations from Bermuda Monetary Authority (BMA), Nephila Capital and Renaissance Re
Presentation from Global Parametrics (GP)
On May 16, 2022, the Innovation Workstream heard a presentation from Zurich North America regarding their weather-based parametric commercial product to supplement a builders risk policy. The product is enabled by data and the payout is triggered by a pre-determined covered event. Traditional builders risk policies provide coverage for physical loss or damage due to weather-related events. The Zurich NA product does not require physical loss or damage for a claim to be paid. The recorded meeting is available on demand . ZurichNA_Slides
听
Presentation from the Demex Group听
On May 10, 2021, the Innovation Workstream heard a presentation from First Company of Hawaii (FICOH) regarding their parametric coverage offered for hurricane preparation and immediate post-hurricane expenses. The policy pays a pre-defined amount based on the windspeed determined for the location of the property. Customers receive warnings of impending storm activity. Following a covered event, customers must attest to damage electronically which triggers the payout. There is a proof of loss process after payment has been made. The coverage is offered through Tokio Marine Group in the surplus lines market.听The meeting is available on demand .听FICOH_Slides.pdf
On March 26, 2021, the Innovation Workstream heard a presentation from Sola Insurance which developed a parametric insurance solution for tornado using National Weather Service data to automatically detect tornado damaged areas and provide prompt payout to insureds. The solution would be offered through admitted carriers as a supplemental coverage on their property policy.听听The meeting is available on demand .听Sola-Slides.pdf听Sola_One-Pager.pdf
On March 25, 2021, the Innovation Workstream heard a presentation from Professional Solutions Insurance Company which developed a product to help pay for expenses not covered by standard property insurance including, deductible offset, differences between replacement cost and actual cash value provisions, expenses related to evacuation and lost income. The product is a standalone residential property coverage, filed in multiple states. The insured must prove they have a homeowner policy to secure coverage and the trigger is based on a claim filed on the primary coverage or a disaster declaration for the location of the insured property. The meeting is available on demand听.听RecoopDisassterInsurance_Slides.pdf
RESOURCES
The CIPR has a key issue page on parametric disaster insurance which includes a history of the product, it's use insuring against natural disasters, a summary of the benefits and concerns as well as links to several scholarly articles.
The A2ii is the implementation arm of the International Association of Insurance Supervisors (IAIS) on Inclusive Insurance generating and disseminating knowledge, building capacity, contributing to IAIS standard-setting, they foster learning and dialogue, support implementation at the regional and national levels, and participate in global advocacy processes. A2ii has developed several reports and issues papers on parametric/index-based insurance which can be found here: .
March 25, A2ii hosted a webinar regarding index-based insurance. The webinar reviews the results of a survey conducted by A2ii collecting information from supervisors and other stakeholders on the current state of index insurance. The webinar can be viewed here: ;
The report including survey results can be found here: 鈥.
The Office of the Commissioner of Insurance of Puerto Rico adopted Rule Number 103, entitled "Requirements for Submitting and Processing Parametric Catastrophic Microinsurance in Personal Lines."
;
This Rule is adopted for the purpose of establishing the regulatory scheme for microinsurance products that are directed at providing coverage for catastrophic risk in personal lines to foster access for all economic sectors in Puerto Rico to insurance coverage with low-cost premiums. This Rule is intended to provide a financial protection tool for persons who otherwise could not purchase traditional insurance. The primary purpose of microinsurance is to create an inclusive financial protection system that will encourage the development of private insurance products that are accessible to the low-income population.
The State of Vermont enacted a law, Sec. 1. 8 V.S.A. 搂 3685, allowing captives in the state to enter into parametric risk transfer contracts. The law defines parametric contract as "a means contract to make a payment upon the occurrence of one or more specified triggering events without proof of loss or obligation to indemnify." The law states that a parametric contract is not an insurance contract. ;
Connecticut Insurance Department Conference on Climate Change and Insurance 2021:
Register for 2022 Connecticut Insurance Department Conference on Climate Change and Insurance
New York Department of Financial Services webinar providing overview of its .