The Treasury Department announced Tuesday that it is moving to amass data from private insurance companies to assess the financial risks of climate change on homeowners across the country.
The department’s Federal Insurance Office (FIO) is proposing a new regulation that will gather homeowners’ and businesses’ data from property and casualty insurers, according to a press release. The FIO will use the data to determine whether private insurance coverage will be disrupted in areas of the nation that are vulnerable to “climate change impacts.”(RELATED: The Fed’s Plan To Battle Inflation Could End Up Making Energy More Expensive. Here’s How)
“FIO’s data collection will add to the work of regulators and policymakers across the Administration to assess climate-related risks to the financial system, the U.S. economy, and the American people,” Treasury Secretary Janet Yellen said in a statement provided by the press release.
If the regulation is implemented it would apply to all large property and casualty insurers; however, it would not apply to small insurers with policies worth less than $100 million, with the exception of those in 10 high-risk states as determined by The Federal Emergency Management Agency, according to a summary of the proposal. The information would be gathered by ZIP code and would not include information about individual homeowners’ policies but would also request data from five years ago to determine market patterns.
The seal US Department of the Treasury is seen on March 27, 2020 in Washington, DC. – US Treasury Secretary Steven Mnuchin on Friday pledged to quickly send cash to Americans as part of a massive $2.2 trillion relief package aimed at rescuing the coronavirus-battered economy. (Photo by Olivier DOULIERY / AFP) (Photo by OLIVIER DOULIERY/AFP via Getty Images)
President Joe Biden signed an executive order in May 2021 to direct the FIO to assess the risk that the “climate crisis” poses to private insurance coverage. The Financial Stability Oversight Council, a government office of financial regulators, deemed climate change to be an “emerging and increasing threat,” according to an October 2021 report.
“Today’s action by the Federal Insurance Office is an important step in determining how Americans are being affected by the increasing costs of climate change,” Yellen stated.
The Treasury Department did not immediately respond to the Daily Caller News Foundation’s request for comment.
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