Insurance Sector and 

Climate-Related Financial Risk: 

Federal Insurance Office

Federal Advisory Committee on Insurance

June 2, 2022
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FIO’s Climate-Related Priorities

“The Secretary of the Treasury shall direct 

the Federal Insurance Office

• To assess climate-related issues or 

gaps in the supervision and 

regulation of insurers, including as 

part of the FSOC’s analysis of financial 

stability, and to

• Further assess, in consultation with the 

States, the potential for major 

disruptions of private insurance 

coverage in regions of the country 

particularly vulnerable to climate change 

impacts.”

--E.O. 14,030 (May 20, 2021)

FIO’s 2022 Priorities

Based on EO and 5,300 comments received to 

FIO’s RFI last fall

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Supervision and Regulation: Assess 

climate-related issues or gaps in the 

supervision and regulation of insurers, 

including their potential impacts on U.S. 

financial stability.

2

Quantitative Analysis: Assess the 

potential for major disruptions of private 

insurance coverage in U.S. markets that 

are particularly vulnerable to climate 

change impacts; facilitate mitigation and 

resilience for disasters.

3

Stakeholder Engagement: Increase 

FIO’s engagement on climate-related 

issues, leverage the insurance sector’s 

ability to achieve climate-related goals.
FIO Climate Report

 Issue the report by year-end 2022 

 Focus on an assessment of climate-related issues or gaps in the 

supervision and regulation of insurers, including their potential impacts on 

U.S. financial stability. Areas that may be covered include:

 Microprudential regulation

 Systemic risks and macroprudential regulation

 Market conduct and consumer protection, including an analysis of state, 

federal, and international climate-related disclosure requirements for 

insurers

 Initial, qualitative analyses on at-risk insurance markets

 Mitigation and resilience initiatives

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Transition risk

Insurers’ investment portfolios

 U.S. insurance sector directly owns 

over $7 trillion of invested assets

 Finalizing analytical approaches for 

assessing portfolio alignment and 

potential transition risk for asset 

portfolios

Physical risk

Underwriting liabilities from P&C 

insurers’ current exposures

 Will assess impact on protection 

gaps and insurance availability, 

particularly in at-risk markets

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Quantitative Analysis

High-quality, granular data needed to deliver on E.O. 14030 including 

assessing insurance availability and affordability for vulnerable communities

FIO continues to assess use of collection and dissemination authorities for 

the insurance sector to help fill potential data gaps
Stakeholder Engagement

 Engaging with colleagues domestically and internationally on issues such 

as macroprudential analyses, supervision, and scenario analysis:

 Planning stakeholder roundtable discussions on topics related to the 

insurance sector and climate-related financial risk.

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U.S.–EU 

Insurance 

Dialogue Project
FACI Climate Subcommittee

 First meeting on May 26

 Subcommittee Charges: 

 Technical discussions and presentations on data, analytical tools, and 

risk selection methodologies

 Periodic discussions with FIO staff on data, modelling, and quantitative 

analysis

 Work will support FIO’s efforts to conduct analyses of climate-related 

risk within the insurance sector

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