CLIMATE
Consumer Groups Urging FIO to Release Data on Climate-Change Impact on Home Insurance
WASHINGTON //BestWire// - A group of consumer advocates is calling on the U.S. Department of the Treasury’s Federal Insurance Office to release nationwide data on the impact climate change has on home insurance markets.
The data was collected from more than 330 insurers, representing 80% of the U.S. property/casualty market, by the National Association of Insurance Commissioners. The data details ZIP code-level information on premiums, policies, claims, losses, limits, deductibles, nonrenewals and coverage types, according to the Financial Stability Oversight Council’s annual report.
The FIO initially planned to host its own data collection efforts, but eventually decided to work with the NAIC on a similar data call (BestWire, March 8, 2024).
In a letter to Treasury leadership, the consumer groups called for the FIO to release the most granular data available as well as analysis on the impact climate change is having on insurance availability and affordability, according to a statement from Public Citizens. Other groups that signed the letter included Americans for Financial Reform Education Fund, Consumer Federation of America, the Union of Concerned Scientists and Sierra Club.
“An insurance crisis is unfolding across the country, and without access to comprehensive national data and analysis, we’ll be in the dark as it starts to impact other parts of the economy,” Carly Fabian, senior insurance policy advocate with Public Citizen’s Climate Program, said in a statement.
The Biden administration asked Treasury to make these assessments three years ago, Fabian said, adding that it isn’t clear why the department hasn’t released the data and analysis yet.
Jessica Garcia, senior policy analyst for climate finance at Americans for Financial Reform Education Fund, said the FIO was created to fill in the regulatory gap left by the U.S. state-based regulatory system and collecting and analyzing data is a vital step in that process.
“If this critical, first-of-its-kind nationwide data is not made publicly available, then FIO will have set back efforts to develop data- and community-driven solutions to the insurance crisis for years to come,” Garcia said.
Attempts to gain comment from Treasury and FIO were not immediately successful.
(By Steve Hallo, senior associate editor, BestWire: Steve.Hallo@ambest.com)