48814 Federal Register / Vol. 86, No. 166 / Tuesday, August 31, 2021 / Notices 

7 GM argues in its petition that glare from the 

parking lamp does not present an unreasonable risk 

to the safety of oncoming drivers however that it 

not the standard by which NHTSA makes 

determinations of inconsequential noncompliance. 

GM argues that the noncompliance is 

inconsequential because the subject 

vehicles’ parking lamp-headlamp 

combination does not exceed the 

maximum permitted glare values for 

headlamps specified in FMVSS No. 108. 

While NHTSA agrees that the parking 

lamp-headlamp combination does not 

appear to exceed test points 

representing the vicinity of an oncoming 

driver’s eyellipse (e.g., 1U—1.5L–L; 

0.5U—1.5L–L; 1.5U—1R- R; 0.5 U—1R– 

3R; 0.5 U—1R–3R), it is noteworthy that 

glare points are not distinctly defined in 

FMVSS No. 108. Based on the data 

provided by GM, 8 out of 19 test points 

for the subject parking lamp exceeded 

the FMVSS No. 108 maximum allowed 

value of 125 cd, seven of which 

exceeded the maximum allowed values 

by 38% to 113%. As such, these lamps 

will be noticeably brighter than a 

compliant lamp and can potentially be 

distracting to other drivers.7

Further, it does not appear that a 

comprehensive set of data was provided 

by GM. While GM provided data for 

combined lower beam and parking lamp 

photometry, GM provided no data 

pertaining exclusively to the lower 

beam or the turn signal photometry. In 

addition, GM only provided select test 

points for lower beam photometry 

combined with the parking lamps. 

It is important to note that paragraph 

S7.1.1.12 of FMVSS No. 108 specifies 

the ratio requirements between the front 

turn signal lamps and the parking 

lamps/clearance lamps. This establishes 

the requirement that turn signal lamps 

have three to five times (dependent on 

the test point) the luminous intensity of 

the parking lamps when turn signal 

lamps are combined with parking 

lamps. If the turn signal lamps are not 

sufficiently bright enough to be 

discernable from the parking lamp, then 

other drivers may not be able to clearly 

identify the vehicles intent to turn, 

which poses an increased risk to motor 

vehicle safety. 

While GM argues that extinguishing 

the parking lamp on the side of the 

vehicle with the active turn signal 

prevents impairment of the performance 

of the activated turn signal, NHTSA 

does not find this compelling because 

extinguishing the parking lamp violates 

the steady burning requirement of 

FMVSS No. 108. See 49 CFR 571.108, 

Table 1–a (requiring that the parking 

lamp ‘‘be activated when the headlamps 

are activated in a steady burning state’’). 

In the event that the turn signal lamp 

fails to activate and the parking lamp is 

still extinguished, this will reduce the 

visibility of the vehicle, thus, increasing 

the risk to motor vehicle safety. 

Per the activation requirements for 

parking lamps, as specified in Table 1– 

a of FMVSS No. 108, NHTSA agrees 

with the public comment submitted 

which states that the parking lamp is 

required to be on, be steady burning 

when the headlights are activated, and 

should not be deactivated when the turn 

signal lamp is used. 

GM has offered to issue a service 

bulletin directing dealers to remedy the 

noncompliance when the vehicles are 

brought in for service. NHTSA notes 

that a manufacturer’s decision to 

conduct a service campaign is not a 

substitute for conducting a recall since 

consumers will neither be notified of 

the noncompliance nor informed to 

return to the dealership for a free 

remedy. 

NHTSA’s Decision: As indicated in 

the analysis of GM’s petition provided 

above, NHTSA finds that GM has not 

demonstrated that the noncompliance of 

the subject vehicles with FMVSS No. 

108 is inconsequential to motor vehicle 

safety. Accordingly, NHTSA hereby 

denies GM’s petition and GM is 

consequently obligated to provide 

notification of, and a free remedy for, 

that noncompliance pursuant to 49 

U.S.C. 30118 and 30120. 

Authority: (49 U.S.C. 30118, 30120: 

delegations of authority at 49 CFR 1.95 

and 501.8) 

Joseph Kolly, 

Acting Associate Administrator for 

Enforcement. 

[FR Doc. 2021–18766 Filed 8–30–21; 8:45 am] 

BILLING CODE 4910–59–P 

DEPARTMENT OF THE TREASURY 

Federal Insurance Office Request for 

Information on the Insurance Sector 

and Climate-Related Financial Risks 

AGENCY: Federal Insurance Office, 

Departmental Offices, Department of the 

Treasury. 

ACTION: Request for Information. 

SUMMARY: The Federal Insurance Office 

(FIO) of the U.S. Department of the 

Treasury (Treasury) is issuing this 

Request for Information (RFI), following 

the May 20, 2021 Executive Order on 

Climate-Related Financial Risk, to 

solicit public input on FIO’s future work 

relating to the insurance sector and 

climate-related financial risks. FIO’s 

efforts will focus on three initial 

climate-related priorities, which are 

described below. Additionally, this RFI 

seeks input on how FIO’s data 

collection and dissemination authorities 

can best be used by FIO in support of 

these priorities, as well as to monitor 

and assess the insurance sector and 

climate-related financial risks. 

DATES: Submit written comments on or 

before November 15, 2021. 

ADDRESSES: Submit comments 

electronically through the Federal 

eRulemaking Portal at http://

www.regulations.gov, in accordance 

with the instructions on that site, or by 

mail to the Federal Insurance Office, 

Attn: Elizabeth Brown, Senior Insurance 

Regulatory Policy Analyst, 

Elizabeth.Brown@treasury.gov, (202) 

597–2869, Room 1410 MT, Department 

of the Treasury, 1500 Pennsylvania 

Avenue NW, Washington, DC 20220. 

Because postal mail may be subject to 

processing delays, it is recommended 

that comments be submitted 

electronically. If submitting comments 

by mail, please submit an original 

version with two copies. Comments 

should be captioned ‘‘FIO Insurance 

Sector and Climate-Related Financial 

Risks.’’ In general, Treasury will post all 

comments to www.regulations.gov 

without change, including any business 

or personal information provided such 

as names, addresses, email addresses, or 

telephone numbers. All comments, 

including attachments and other 

supporting materials, are part of the 

public record and subject to public 

disclosure. You should submit only 

information that you wish to make 

available publicly. 

FOR FURTHER INFORMATION CONTACT: 

Steven Seitz, Director, Federal 

Insurance Office, Steven.Seitz@

treasury.gov, (202) 531–0915; Stephanie 

Schmelz, Deputy Director, 

Stephanie.Schmelz@treasury.gov, (202) 

341–5258; Elizabeth Brown, Senior 

Insurance Regulatory Policy Analyst, 

Elizabeth.Brown@treasury.gov, (202) 

597–2869 or Bret Howlett, Senior 

Insurance Regulatory Policy Analyst, 

Bret.Howlett@treasury.gov, (202) 570– 

3916. Persons who have difficulty 

hearing or speaking may access these 

numbers via TTY by calling the toll-free 

Federal Relay Service at (800) 877–8339. 

SUPPLEMENTARY INFORMATION: 

Background 

The Insurance Sector and ClimateRelated Financial Risks 

The Intergovernmental Panel on 

Climate Change (IPCC) reported this 

year that ‘‘[h]uman-induced climate 

change is already affecting many 

weather and climate extremes in every 

region across the globe. Evidence of 


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Federal Register / Vol. 86, No. 166 / Tuesday, August 31, 2021 / Notices 48815 

1 IPCC, Climate Change 2021: The Physical 

Science Basis—Summary for Policymakers, 7 

August 2021, SPM–10, https://www.ipcc.ch/report/ 

ar6/wg1/downloads/report/IPCC_AR6_WGI_

SPM.pdf. 

2See, e.g., Adam B. Smith, ‘‘2010–2019: A 

Landmark Decade of U.S. Billion-Dollar Weather 

and Climate Disasters,’’ NOAA Climate.gov Blog, 

January 8, 2020, https://www.climate.gov/newsfeatures/blogs/beyond-data/2010-2019-landmarkdecade-us-billion-dollar-weather-and-climate. FIO 

is using the term ‘‘climate-related disasters’’ to refer 

to the type of weather-related events (such as 

wildfires, floods, hurricanes, etc.) that may be 

produced or exacerbated by climate change, as 

distinct from non-weather related, natural events 

(such as earthquakes and tsunamis). 

3Aon, Weather, Climate & Catastrophe Insight 

Annual Report 2020 (2021), 9, https://

www.aon.com/global-weather-catastrophe-naturaldisasters-costs-climate-change-2020-annual-report/ 

index.html?utm_source=region&utm_

medium=africa&utm_campaign=natcat21 (Aon 

2020 Cat Insight Annual Report). 

4See, e.g., Christopher Flavelle, ‘‘Wildfires 

Hasten Another Climate Crisis: Homeowners Who 

Can’t Get Insurance,’’ New York Times, September 

2, 2020, https://www.nytimes.com/2020/09/02/ 

climate/wildfires-insurance.html; Emma Kerr, 

‘‘Here’s How You’re Already Paying for Climate 

Change,’’ U.S. News & World Report, June 10, 2021, 

https://money.usnews.com/money/personalfinance/spending/articles/heres-how-youre-payingfor-climate-change. 

5Best’s Special Report: First Look: 12 Month 2020 

Life/Annuity Financial Results (March 23, 2021), 

https://www.businesswire.com/news/home/ 

20210323005711/en/Best%E2%80%99s-SpecialReport-U.S.-LifeAnnuity-Industry%E2%80%99sNet-Income-Cut-Nearly-in-Half-in-2020. 

6New York Department of Financial Services, An 

Analysis of New York Domestic Insurers’ Exposure 

to Transition Risks and Opportunities from Climate 

Change (June 10, 2021), https://www.dfs.ny.gov/ 

system/files/documents/2021/06/dfs_2dii_report_

ny_insurers_transition_risks_20210610.pdf 

7FSB, The Implications of Climate Change for 

Financial Stability (November 23, 2020), 4, 16, 

https://www.fsb.org/wp-content/uploads/ 

P231120.pdf (FSB Climate Change Implications 

Report). 

8See FSB Climate Change Implications Report; 

Task Force on Climate-Related Financial 

Disclosures, Recommendations of the Task Force on 

Climate-related Financial Disclosures (June 15, 

2017), 13, https://www.fsb-tcfd.org/publications/ 

final-recommendations-report/. 

9 FSB Climate Change Implications Report. 

10 FSB Climate Change Implications Report, 1. 

11See, e.g., FSB Climate Change Implications 

Report, 23 (noting that, if the materialization of 

climate related risks were to lead to large increases 

in insured losses from physical risks, this might 

reduce the degree to which households and 

companies could insure against these risks). 

12 FSB Climate Change Implications Report, 28; 

FSB and International Monetary Fund, The 

Financial Crisis and Data Gaps: G20 Data Gaps 

Initiative (DGI–2) The Fifth Progress Report— 

Countdown to 2021 in Light of COVID–19 (October 

2020), 7, https://www.fsb.org/wp-content/uploads/ 

P071020.pdf; International Association of Insurance 

Supervisors and Sustainable Insurance Forum, 

Application Paper on the Supervision of Climaterelated Risks in the Insurance Sector (May 2021), 

9, 12–13, 28, https://www.iaisweb.org/page/ 

supervisory-material/application-papers/file/97146/ 

application-paper-on-the-supervision-of-climaterelated-risks-in-the-insurance-sector#; ‘‘How 

Insurance Companies Can Prepare for Risk from 

Climate Change,’’ Deloitte, https://

www2.deloitte.com/us/en/pages/financial-services/ 

articles/insurance-companies-climate-changerisk.html. 

13National Association of Insurance 

Commissioners (NAIC) Center for Insurance Policy 

and Research, Assessment of and Insights from 

NAIC Climate Risk Disclosure Data (November 

2020), 5–6, https://content.naic.org/sites/default/ 

files/cipr-report-assessment-insights-climate-riskdata.pdf. The six states—California, Connecticut, 

Minnesota, New Mexico, New York, and 

Washington—use the Insurer Climate Risk 

Disclosure Survey developed by the NAIC. The 

states require survey completion only by insurers 

that are regulated by them and who annually report 

$100 million or more in premiums and annuity 

considerations. 

observed changes in extremes such as 

heatwaves, heavy precipitation, 

droughts, and tropical cyclones, and, in 

particular, their attribution to human 

influence, has strengthened since 

[2013].’’ 1 The United States has 

experienced a dramatic increase in the 

frequency and severity of climaterelated disasters with a corresponding 

increase in economic losses in the past 

40 years.2 Economic growth combined 

with changing socioeconomic trends, 

such as urbanization and the migration 

patterns to areas at higher risk of 

climate-related disasters, are increasing 

the financial risks associated with the 

effects of climate change. The increased 

frequency and severity of climaterelated disasters, as well as the 

magnitude of associated insured losses, 

highlight the significance of these 

climate-related financial risks and the 

role of insurers in responding to them.3

Additionally, some insurance 

consumers are increasingly unable to 

find affordable and available property 

insurance coverage in certain insurance 

markets.4

The impact of climate change also 

affects insurers through their broader 

role in financial markets. For example, 

the U.S. life insurance sector is one of 

the largest investors in the U.S capital 

markets, with over $4.7 trillion in 

investments held in general accounts at 

year-end 2020.5 As owners of significant 

amounts of assets, insurers could be 

vulnerable to potential decreases in 

asset values arising from the transition 

towards a low-carbon economy.6

More broadly, climate-related 

financial risks may present challenges to 

the stability of the financial system (of 

which the insurance sector is an 

important part) including as shocks that 

increase financial system 

vulnerabilities. In a 2020 report, the 

Financial Stability Board (FSB) 

described climate-related risks as falling 

into three categories: 

• Physical risks are ‘‘the possibility 

that the economic costs of the increasing 

severity and frequency of climatechange related extreme weather events, 

as well as more gradual changes in 

climate, might erode the value of 

financial assets, and/or increase 

liabilities.’’ 7

• Transition risks can arise from the 

technological, market, and policy 

changes needed to adjust to a low 

carbon economy and their effects on the 

value of financial assets and liabilities. 

Depending on the nature, speed, and 

focus of these changes, transition risks 

may pose varying levels of financial and 

reputational risk to organizations.8

• Liability risks may ‘‘arise when 

parties are held liable for losses related 

to environmental damage that may have 

been caused by their actions or 

omissions.’’ 9

The same FSB report described how 

these risks might affect financial 

stability and highlighted the potential 

for new risks introduced from the 

response of the global financial system 

to climate-related shocks.10

An assessment of how climate-related 

financial risks may affect the insurance 

sector should consider physical risks, 

transition risks, and liability risks. More 

specifically, the assessment should 

include how the life and property & 

casualty (P&C) insurers’ business 

models (including their underwriting 

activities, market activities, and 

investment activities) are affected by 

each category of risk.11

The lack of available data complicates 

the ability to conduct such assessments. 

Government and private sector 

stakeholders have noted the significant 

issues caused by the lack of available 

data to assess climate-related financial 

risk within the insurance sector.12 These 

stakeholders could all potentially 

benefit from high-quality, consistent, 

comparable, and reliable data for their 

risk management, disclosures, and 

forward plans to assess and address 

climate-related financial risks. State 

regulatory tools, such as the Own Risk 

and Solvency Assessment (ORSA), may 

capture data on some climate-related 

financial risks if they are recognized by 

a reporting insurer as having a material 

impact on its solvency over the next one 

to two years, but these tools may be 

inadequate to assess climate-related 

risks, particularly over a longer time 

horizon. Additionally, only six states 

have regularly collected from insurers 

certain limited, high-level qualitative 

data directly focused on climate-related 

financial risks.13 No federal authority is 

collecting climate-related financial data 

specific to the insurance sector. 

Executive Orders 

The President’s May 20, 2021, 

Executive Order on Climate-Related 


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14Exec. Order No. 14,030 § 3(b)(i), 86 FR 27967 

(May 20, 2021), https://www.federalregister.gov/ 

documents/2021/05/25/2021-11168/climaterelated-financial-risk. 

15Exec. Order No. 14,008 § 201, 86 FR 7619 

(January 27, 2021), https://www.federalregister.gov/ 

documents/2021/02/01/2021-02177/tackling-theclimate-crisis-at-home-and-abroad. 

16 31 U.S.C. 313(c)(1)(A)–(B). 

17See, e.g., Alexa Jay et al., ‘‘Overview,’’ in 

Impacts, Risks and Adaptation in the United States: 

Fourth National Climate Assessment (2018), 36, 

https://nca2018.globalchange.gov/downloads/ 

NCA4_Ch01_Overview.pdf. 

18 31 U.S.C. 313(e)(6). 

19 31 U.S.C. 313(e)(1). 

20 31 U.S.C. 313(c)(1)(E). 

21 12 U.S.C. 5321(b)(2)(B). 

22Exec. Order No. 14,030 § 3(b)(i). 

23See, e.g., David Altmaier, Presidential Address 

(speech, NAIC Spring 2021 Opening Session, April 

12, 2021), https://content.naic.org/article/notice_

spring_2021_opening_session_prepared_

remarks.htm. 

24See, e.g., FIO, Report Providing an Assessment 

of the Current State of the Market for Natural 

Catastrophe Insurance in the United States (2015), 

https://home.treasury.gov/system/files/311/ 

Natural%20Catastrophe%20Report.pdf. See also 

‘‘Reports and Notices,’’ FIO, https://

home.treasury.gov/policy-issues/financial-marketsfinancial-institutions-and-fiscal-service/federalinsurance-office/reports-notices (providing links to 

all FIO Annual Reports and other reports). 

25See U.S. Department of the Treasury, ‘‘Treasury 

Announces Coordinated Climate Policy Strategy 

with New Treasury Climate Hub and Climate 

Counselor,’’ news release, April 19, 2021, https:// 

home.treasury.gov/news/press-releases/jy0134. 

Financial Risk emphasizes the 

important role that the insurance sector 

can play in combatting climate change. 

It instructs the Secretary to task FIO ‘‘to 

assess climate-related issues or gaps in 

the supervision and regulation of 

insurers, including as part of the 

[Financial Stability Oversight Council] 

FSOC’s analysis of financial stability, 

and to further assess, in consultation 

with States, the potential for major 

disruptions of private insurance 

coverage in regions of the country 

particularly vulnerable to climate 

change impacts.’’ 14

The May 20 Executive Order 

complements the President’s January 27, 

2021 Executive Order on Tackling the 

Climate Crisis at Home and Abroad, 

which set forth the Administration’s 

policy to ‘‘organize and deploy the full 

capacity of its agencies to combat the 

climate crisis to implement a 

Government-wide approach.’’ The 

President’s January 27 Executive Order 

puts the climate crisis at the center of 

U.S. foreign policy and national security 

and seeks to ‘‘put the United States on 

a path to achieve net-zero emissions, 

economy-wide, by no later than 

2050.’’ 15

FIO’s Authorities 

Title V of the Dodd-Frank Wall Street 

Reform and Consumer Protection Act 

established FIO within Treasury. FIO’s 

statutory authorities include, among 

other things, monitoring all aspects of 

the insurance sector, including 

identifying issues or gaps in the 

regulation of insurers that could 

contribute to a systemic crisis in the 

insurance sector or the U.S. financial 

system. FIO’s authorities also include 

monitoring the availability and 

affordability of insurance products for 

traditionally underserved communities 

and consumers, minorities, and lowand moderate-income persons.16 These 

segments of the population may be 

negatively and disproportionately 

impacted by climate change.17

In addition, FIO is authorized to 

collect data and information on and 

from the insurance sector, including 

through the use of subpoenas.18 FIO is 

also authorized to analyze and 

disseminate data and information and 

issue reports on all lines of insurance, 

except health insurance.19

Because climate change is a global 

phenomenon, FIO’s international 

insurance statutory authorities can help 

achieve U.S. goals in this area. FIO is 

authorized to coordinate federal efforts 

and develop federal policy on 

prudential aspects of international 

insurance matters, including 

representing the United States, as 

appropriate, in the International 

Association of Insurance Supervisors 

(IAIS).20 Finally, the FIO Director also 

serves as a non-voting member of the 

FSOC.21 The May 20 Executive Order 

directs that FIO contribute to FSOC’s 

analysis of financial stability related to 

climate change.22

FIO’s Current Engagement on ClimateRelated Issues 

FIO’s role and statutory authorities 

enable it to take a leadership position in 

analyzing how the insurance sector may 

be impacted by, and help mitigate, 

climate-related risks. FIO is engaging 

with the NAIC and state insurance 

regulators through their work on 

climate-related topics.23 FIO also 

represents the United States at the IAIS, 

is a member of the UN’s Sustainable 

Insurance Forum, and is a member of 

the Organisation of Economic 

Cooperation and Development’s 

Insurance and Private Pensions 

Committee—all of which are 

increasingly focused on climate-related 

issues. In addition, FIO is discussing 

climate-related issues with insurance 

authorities in both the United States and 

the European Union through the EUU.S. Insurance Project. FIO also 

represents Treasury in the federal 

Mitigation Framework Leadership 

Group, which is a national structure to 

coordinate disaster mitigation efforts 

across the federal government and with 

state, local, tribal, and territorial 

representatives. FIO is engaging with 

the Securities and Exchange 

Commission and other members of the 

FSOC on climate-related financial risks. 

More generally, FIO provides insurance 

expertise and technical assistance 

within Treasury and to other federal 

agencies, including to the Federal 

Emergency Management Agency in 

connection with the National Flood 

Insurance Program (NFIP). FIO’s 

engagement on climate-related issues 

also includes the issuance of public 

reports addressing natural disasters, 

climate change, and insurance, 

including through its annual report to 

Congress and the President.24

FIO’s Initial Climate-Related Priorities 

FIO intends for its climate-related 

work to respond not only to the 

Executive Orders, but also to provide an 

insurance-specific focus within 

Treasury’s broader climate work, 

including working with Treasury’s 

Climate Hub.25 In particular, FIO 

intends to initially focus on the 

following three climate-related 

priorities: 

1. Insurance 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. 

Maintaining the financial stability of 

the insurance sector will involve 

identifying and filling gaps (if any) in 

insurance supervision with a focus on 

assessing climate-related financial risks. 

This will include monitoring the 

integration of climate-related financial 

risks into insurance supervisory 

practices and regulatory frameworks, as 

well as assessing whether sufficient 

data, methodologies, and tools exist to 

manage the solvency of insurers and to 

protect them against the long-term risk 

of climate change. To that end, FIO 

plans to assess supervisory practices 

and resources, including but not limited 

to examination policies and procedures, 

solvency assessment and techniques, 

data availability and integrity, public 

disclosures, modeling, and forwardlooking assessments (e.g., scenario 

analysis, stress testing). FIO will consult 

with individual state insurance 

regulators and the NAIC during its 

assessment of such supervisory 

practices and resources. 

2. Insurance Markets and Mitigation/ 

Resilience: Assess the potential for 


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26See, e.g., FIO, Annual Report on the Insurance 

Industry (September 2020), 59–60, https://

home.treasury.gov/system/files/311/2020-FIOAnnual-Report.pdf. See also Exec. Order No. 14,030 

§ 3(b)(i) (directing FIO to assess ‘‘the potential for 

major disruptions of private insurance coverage in 

regions of the country particularly vulnerable to 

climate change impacts’’ as distinct from insurance 

provided by or backed by a government entity, such 

as the federal NFIP. (emphasis added)). 

27See, e.g., ‘‘California FAIR Plan Property 

Insurance,’’ https://www.cfpnet.com; ‘‘About Us: 

Who We Are,’’ Citizens Property Insurance 

Corporation, https://www.citizensfla.com/who-weare; Congressional Research Service, Introduction to 

the National Flood Insurance Program (NFIP), 

Report No. R44593 (Jan. 5, 2021), 1, https://fas.org/ 

sgp/crs/homesec/R44593.pdf. 

28See, e.g., Rachel Morello-Frosch, et al., The 

Climate Gap: Inequalities in How Climate Change 

Hurts Americans & How to Close the Gap (2018), 

17, https://dornsife.usc.edu/assets/sites/242/docs/ 

ClimateGapReport_full_report_web.pdf. 

29See, e.g., Aon 2020 Cat Insight Annual Report; 

Federal Advisory Committee Protection Gap 

Subcommittee, Addressing the Protection Gap 

Through Public/Private Partnerships & Other 

Mechanisms, (December 5, 2019), https://

home.treasury.gov/system/files/311/ 

December2019FACI_

ProtectionGapPresentation.pdf; ACPR, A First 

Assessment of Financial Risks Stemming from 

Climate Change: The Main Results of the 2020 

Climate Pilot Exercise, No. 122–2021 (2021), 60, 

https://acpr.banque-france.fr/sites/default/files/ 

medias/documents/20210602_as_exercice_pilote_

english.pdf. 

30See, e.g., U.N. Environment Programme 

Finance Initiative, ‘‘The Net Zero Insurance 

Alliance, Statement of Commitment by Signatory 

Companies’’ (July 2021), 1 n. 1, https://

www.unepfi.org/psi/wp-content/uploads/2021/07/ 

NZIA-Commitment.pdf. 

31 GHG includes Scope 1, 2, and 3 emissions. 

Scope 1 emissions are direct GHG emissions that 

occur from sources controlled or owned by an 

entity (such as an insurer). Scope 2 emissions are 

indirect GHG emissions associated with purchase of 

electricity, steam, heat, or cooling by an entity. 

Scope 3 emissions are all other indirect GHG 

emissions not covered by Scope 2 and where an 

entity may impact in the value chain, such as 

business travel and investments. For insurers, 

Scope 3 emissions would include the Scope 1, 2, 

and 3 emissions by policyholders when significant 

(and when data is available to determine them). 

See, e.g., ‘‘Scope 1 and Scope 2 Inventory 

Guidance,’’ U.S. Environmental Protection Agency 

(EPA), https://www.epa.gov/climateleadership/ 

scope-1-and-scope-2-inventory-guidance; ‘‘Scope 3 

Inventory Guidance,’’ EPA, https://www.epa.gov/ 

climateleadership/scope-3-inventory-guidance. 

32Claire Wilkinson, ‘‘Connecticut Bill Calls for 

Regulation of Insurers’ Climate Risks,’’ Business 

Insurance, June 17, 2021, https://

www.businessinsurance.com/article/20210617/ 

NEWS06/912342605/Connecticut-bill-calls-forregulation-of-insurers%E2%80%99-climate-risks. 

33Exec. Order No. 14,030 § 3(b)(i). 

major disruptions of private insurance 

coverage in U.S. markets that are 

particularly vulnerable to climate 

change impacts; facilitate mitigation and 

resilience for disasters. 

Growing evidence indicates that 

climate change may be associated with 

a decline in the availability and 

affordability of insurance provided by 

the private sector (i.e., private insurance 

coverage) in certain markets.26 The 

creation and expansion of insurers of 

last resort by individual U.S. states and 

the federal government highlights this 

problem.27 FIO intends to examine the 

insurability of disasters that are 

produced or exacerbated by climate 

change, including wildfires, hurricanes, 

floods, wind damage, and extreme 

temperatures. 

Additionally, traditionally 

underserved communities and 

consumers, minorities, and low- and 

moderate-income persons may have 

disproportionate challenges in obtaining 

affordable property insurance to cover 

the risks posed by climate-related 

disasters; further declines in available 

and affordable insurance could 

exacerbate the inequities that these 

persons face.28 This situation 

underscores the need to identify 

solutions to address the growing 

protection gap exacerbated by climate 

change.29 Therefore, FIO also intends to 

assess the availability and affordability 

of insurance coverage in high-risk areas, 

particularly for traditionally 

underserved communities and 

consumers, minorities, and low- and 

moderate-income persons. 

Beyond analyzing potential insurance 

market disruptions, FIO intends to look 

at solutions, including identifying best 

practices for mitigation that can then 

increase post-disaster resilience, 

including solutions that can help ensure 

sufficient availability and affordability 

of insurance for consumers in light of 

increasing climate-related disaster risk. 

In addition, FIO will examine the role 

of insurers in supporting climate 

resilience in critical infrastructure, as 

well as in supporting green investment 

initiatives. 

3. Insurance Sector Engagement: 

Increase FIO’s engagement on climaterelated issues; leverage the insurance 

sector’s ability to help achieve climaterelated goals. 

FIO plans to increase its engagement 

on climate-related issues and take a 

leadership role in analyzing how the 

insurance sector may help mitigate 

climate-related risks. Throughout this 

work, FIO will engage with 

stakeholders, including through this 

RFI. Additionally, the insurance sector 

has the ability to shape industries, 

products, and practices through its 

functions in the financial markets and 

broad understanding of risk. Thus, it 

can influence climate-related activity of 

other sectors of the U.S. economy. FIO 

therefore will engage with the insurance 

sector to assess how the sector may help 

achieve national climate-related goals, 

including mitigation, adaptation, and 

transition to a lower carbon economy. 

This could include insurance sector 

consideration of underwriting activities, 

investment holdings, and business 

operations to support a low emissions 

economy.30 It also could encompass 

insurance sector transition of its 

operational and attributable greenhouse 

gas (GHG) emissions.31 In addition, FIO 

plans to consider ways to address the 

lack of common methodology and 

standardization in measuring financed 

emissions, particularly those of nonpublic companies in which the 

insurance sector underwrites and 

invests. Currently, only one state has 

passed legislation that is intended to 

leverage the insurance sector’s ability to 

affect GHG emissions.32

I. Request for Comments 

Below, FIO invites public comments 

on a series of questions. The responses 

to this RFI will help inform FIO’s 

assessment of the implications of 

climate-related financial risks for the 

insurance sector. It also will help FIO 

better understand (1) which data 

elements are necessary to accurately 

assess climate risk; (2) which data 

elements remain unavailable; and (3) 

how FIO could collect this data and 

make it available to stakeholders as 

needed. Access to high-quality, reliable, 

and consistent data will be necessary for 

accomplishing all three of FIO’s initial 

climate-related priorities. FIO also will 

identify and issue recommendations on 

individual actions that can be taken by 

various insurance sector stakeholders 

(such as state insurance regulators, 

insurers, and policyholders) to address 

climate-related financial risks and 

facilitate the U.S. insurance sector’s 

transition to a more sustainable future. 

FIO recognizes that an effective policy 

response to climate-related financial 

risk requires an iterative approach and 

intends to adjust its work and priorities 

as needed. 

Executive Order on Climate-Related 

Financial Risk 

1. Please provide your views on how 

FIO should assess and implement the 

action items set forth for FIO in the 

Executive Order on Climate-Related 

Financial Risk.33

FIO’s Initial Climate-Related Priorities 

2. Please provide your views on FIO’s 

three climate-related priorities and 

related activities, particularly with 

regard to whether there are alternative 

or additional priorities or activities that 

FIO should evaluate regarding the 

impact of climate change on the 

insurance sector and the sector’s effect 

on mitigation and adaptation efforts. 


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48818 Federal Register / Vol. 86, No. 166 / Tuesday, August 31, 2021 / Notices 

Climate-Related Data and FIO’s Data 

Collection and Data Dissemination 

Authorities 

3. What specific types of data are 

needed to measure and effectively 

assess the insurance sector’s exposures 

to climate-related financial risks? If data 

is not currently available, what are the 

key challenges in the collection of such 

climate-related data? In your response, 

please provide your views on the 

quality, consistency, comparability, 

granularity, and reliability of the 

available or needed data and associated 

data sources. 

4. What are the key factors for the 

insurance sector in developing 

standardized, comparable, and 

consistent climate-related financial risk 

disclosures? In your response, please 

discuss whether a global approach for 

disclosure standards needs to be 

adopted domestically for insurers. 

Please also address the advantages and 

disadvantages of current proposals to 

standardize such disclosures, such as 

those set forth by the Task Force on 

Climate-Related Financial Disclosures 

or the NAIC’s Insurer Climate Risk 

Disclosure Data Survey. 

5. Please provide your views on how 

FIO’s data collection and dissemination 

authorities should be used by FIO to 

research, monitor, assess, and publicize 

climate-related financial risk and other 

areas of the insurance markets that are 

affected by climate change. 

6. What are the likely advantages and 

disadvantages of a verified, open-source, 

centralized database for climate-related 

information on the insurance sector? 

Please include in your response the 

types of information, if any, that may be 

most useful to disseminate through such 

a database and the key elements in the 

development and design of such a 

database. 

Insurance Supervision and Regulation 

7. How should FIO identify and assess 

climate-related issues or gaps in the 

supervision and regulation of insurers, 

including their potential impact on 

financial stability? In your response, 

please address insurance supervision 

and regulations concerning: (a) 

Prudential concerns, (b) market conduct 

regarding insurance products and 

services, and (c) consumer protection. In 

addition, please discuss how FIO 

should assess the effectiveness of U.S. 

state insurance regulatory and 

supervisory policies in addressing and 

managing the climate-related financial 

risks with regard to the threat they may 

pose to U.S financial stability, including 

identifying (1) the major channels 

through which climate-related physical, 

transition, and/or liability risks may 

impact the stability of the U.S. 

insurance market, and (2) the degree to 

which insurers’ business models could 

be affected by each category of risk and 

the relevant time horizons for such 

effects. 

8. Please identify the key structural 

issues that could inhibit the ability of 

insurance supervisors to assess and 

manage climate-related financial risk in 

the insurance sector (e.g., accounting 

frameworks, other standards). What 

barriers could inhibit the integration of 

climate-related financial risks into 

insurance regulation? 

9. What approaches used by other 

jurisdictions or multi-national 

organizations should FIO evaluate that 

would help inform it about existing 

supervisory and regulatory issues and 

gaps concerning climate-related 

financial risks? Please describe these 

approaches, including their advantages 

and disadvantages, as well as available 

data sources on these approaches. 

Insurance Markets and Mitigation/ 

Resilience 

10. What factors should FIO consider 

when identifying and assessing the 

potential for major disruptions of 

insurance coverage in U.S. markets that 

are particularly vulnerable to climate 

change impacts? 

11. What markets are currently facing 

major disruptions due to climate change 

impacts? What markets are likely to be 

at risk for major disruptions due to 

climate change impacts in the future? 

When discussing markets at risk for 

future disruption, please estimate the 

likely time horizons (e.g., 5, 10, 20, or 

more years) when these disruptions may 

occur. 

12. Climate change is currently 

exacerbating economic losses caused by 

weather-related disasters and is 

projected to cause further damage in the 

future. Please provide information on 

the actions that insurers have taken in 

response to the threat of increased 

economic losses from climate-related 

disasters, including how insurers are 

incorporating mitigation and resilience 

considerations into their business 

operations, as well as what other 

strategies or solutions that insurers or 

U.S. regulators may want to explore that 

would help insurers mitigate the impact 

of climate change and build resilience. 

13. To what extent, if any, are models 

(whether internal proprietary models, 

open-source models, or third-party 

vendor models) used in the 

underwriting process to consider the 

impact of climate change? How do these 

models affect pricing of insurance 

products and business decisions (e.g., 

level of catastrophe exposure, 

utilization of reinsurance)? What are the 

best practices for model validation? 

14. How should FIO assess the 

availability and affordability of 

insurance coverage in U.S. markets that 

are particularly vulnerable to climate 

change impacts? In your response, 

please discuss how to balance 

maintaining insurer solvency with the 

need to address the availability and 

affordability of insurance products 

responsive to perils associated with 

climate-related risks, particularly for 

traditionally underserved communities 

and consumers, minorities, and lowand moderate-income persons. 

15. In what areas have public-private 

partnerships or collaborations among 

state or local governments been effective 

in developing responses to climate 

change that may be taken by the 

insurance sector or insurance 

regulators? How can FIO evaluate the 

potential long-term or permanent effects 

on the insurance sector of such publicprivate partnerships or state and local 

collaborations to address climate-related 

risks? How should FIO consider state 

insurance regulatory efforts on 

consumer education related to climate 

risks? 

Insurance Sector Engagement 

16. Please provide your views on 

additional ways that FIO should engage 

with the insurance sector on climaterelated issues. 

17. How should FIO assess the efforts 

of insurers, through their underwriting 

activities, investment holdings, and 

business operations to meet the United 

States’ climate goals, including reaching 

net-zero emissions by 2050? For 

example, what steps should the 

insurance sector be taking to help 

improve transparency, comparability, 

and assessment of Scope 1, Scope 2, 

and, to the extent possible, Scope 3 

GHG activities? 

18. What role or actions might states 

take to encourage the insurance sector’s 

transition to a low emissions 

environment and an adaptive and 

resilient economy? In your response, 

please discuss whether efforts by states 

to encourage the development of new 

insurance products, to promote 

sustainable investment and 

underwriting activities, and to address 

protection gaps created by climaterelated financial risks might facilitate 

this transition. 

General 

19. Please provide any additional 

comments or information on other 

issues or topics that may be relevant to 


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Federal Register / Vol. 86, No. 166 / Tuesday, August 31, 2021 / Notices 48819 

FIO’s work on insurance and climaterelated risks. 

Steven E. Seitz, 

Director, Federal Insurance Office. 

[FR Doc. 2021–18713 Filed 8–30–21; 8:45 am] 

BILLING CODE 4810–AK–P 

DEPARTMENT OF THE TREASURY 

United States Mint 

2021 Pricing of Numismatic Gold, 

Commemorative Gold, Platinum, and 

Palladium Products Grid 

AGENCY: United States Mint, Department 

of the Treasury. 

ACTION: Notice. 

SUMMARY: The United States Mint 

announces 2021 revisions to include a 

premium increase in price for the 

Palladium coins and expansion of the 

price ranges up to $4,049.99 within the 

Numismatic Gold, Commemorative 

Gold, Platinum, and Palladium Products 

Grid. 

FOR FURTHER INFORMATION CONTACT: 

Derrick Griffin; Sales and Marketing 

Directorate; United States Mint; 801 9th 

Street NW; Washington, DC 20220; or 

call 202–354–7500. 

SUPPLEMENTARY INFORMATION: An 

excerpt of the grid with a recent price 

range for the palladium proof coins 

appears below: 

The complete 2021 Pricing of 

Numismatic Gold, Commemorative 

Gold, Platinum, and Palladium Products 

Grid will be available at https://

catalog.usmint.gov/coin-programs/ 

american-eagle-coins. 

Pricing can vary weekly dependent 

upon the London Bullion Market 

Association gold, platinum, and 

palladium prices weekly average. The 

pricing for all United States Mint 

numismatic gold, platinum, and 

palladium products is evaluated every 

Wednesday and modified as necessary. 

Authority: 31 U.S.C. 5111, 5112, & 

9701. 

Eric Anderson, 

Executive Secretary, United States Mint. 

[FR Doc. 2021–18730 Filed 8–30–21; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF VETERANS 

AFFAIRS 

[OMB Control No. 2900–NEW] 

Agency Information Collection 

Activity: Election To Waive, Retain, or 

Re-Elect Due Process Rights if in 

Receipt of Concurrent Active Duty 

Service Pay and Disability 

Compensation Pay 

AGENCY: Veterans Benefits 

Administration, Department of Veterans 

Affairs. 

ACTION: Notice. 

SUMMARY: Veterans Benefits 

Administration, Department of Veterans 

Affairs (VA), is announcing an 

opportunity for public comment on the 

proposed collection of certain 

information by the agency. Under the 

Paperwork Reduction Act (PRA) of 

1995, Federal agencies are required to 

publish notice in the Federal Register 

concerning each proposed collection of 

information, including each proposed 

new collection, and allow 60 days for 

public comment in response to the 

notice. 

DATES: Written comments and 

recommendations on the proposed 

collection of information should be 

received on or before November 1, 2021. 

ADDRESSES: Submit written comments 

on the collection of information through 

Federal Docket Management System 

(FDMS) at www.Regulations.gov or to 

Nancy J. Kessinger, Veterans Benefits 

Administration (20M33), Department of 

Veterans Affairs, 810 Vermont Avenue 

NW, Washington, DC 20420 or email to 

nancy.kessinger@va.gov. Please refer to 

‘‘OMB Control No. 2900–NEW’’ in any 

correspondence. During the comment 

period, comments may be viewed online 

through FDMS. 

FOR FURTHER INFORMATION CONTACT: 

Maribel Aponte, Office of Enterprise 

and Integration, Data Governance 

Analytics (008), 1717 H Street NW, 

Washington, DC 20006, (202) 266–4688 

or email maribel.aponte@va.gov. Please 

refer to ‘‘OMB Control No. 2900–NEW’’ 

in any correspondence. 

SUPPLEMENTARY INFORMATION: Under the 

PRA of 1995, Federal agencies must 

obtain approval from the Office of 

Management and Budget (OMB) for each 

collection of information they conduct 

or sponsor. This request for comment is 

being made pursuant to Section 

3506(c)(2)(A) of the PRA. 

With respect to the following 

collection of information, VBA invites 

comments on: (1) Whether the proposed 

collection of information is necessary 

for the proper performance of VBA’s 

functions, including whether the 


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