NAMIC Shares Senate Concerns on FIO Data Call

The National Association of Mutual Insurance Companies reiterated its concerns regarding a duplicative data call from the Federal Insurance Office on climate change, echoing those previously voiced by state regulators and now repeated by a bipartisan group of nearly 40 senators in a letter sent today to Treasury Secretary Janet Yellen.

“Mutual insurers have been at the forefront of helping policyholders deal with climate change – from before the industrial age through the recent growth of severe storms,” said Jimi Grande, senior vice president of federal and political affairs for NAMIC. “Understanding how the climate is changing and the impact it has on our communities is of vital interest to mutual insurers and the insurance industry as a whole.”

FIO announced its proposed data collection effort in October 2022 seeking a broad array of highly detailed information from companies using standards different from most, if not all, other climate-related research into insurance. In their letter, the senators reminded FIO that insurance is regulated by the states and expressed concern that its efforts – while not explicitly regulatory – would pressure state regulators to adopt a “one-size-fits-all” policy from FIO rather than building on the work already done to mitigate and manage the risks of climate change. Members of the House, as well as the National Association of Insurance Commissioners, have also voiced objection to the data call.

“FIO’s ‘go it alone’ approach to its data call threatens our efforts to understand climate change by ignoring the years of meaningful work by state regulators in cooperation with insurers,” Grande said. “Understanding how climate change affects our policyholders and their communities is everyone’s job, and it must be a truly collaborative effort.”

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NAMIC membership reflects many of the country’s largest national insurers as well as regional and local mutual insurance companies on main streets across America. NAMIC members write $357 billion in annual premiums and account for 69 percent of homeowners, 56 percent of the automobile, and 31 percent of the business insurance markets.

Article Posted: 05.02.23
Last Updated: 05.02.23