Direct Answer
NAIC, NY DFS, and the U.S. Treasury’s Federal Insurance Office show how physical climate risk is becoming central to U.S. insurance and financial supervision. NAIC’s Climate Risk Disclosure Survey is aligned with TCFD and used by participating state insurance regulators. NY DFS has issued guidance for regulated insurers, banking institutions, and mortgage institutions on managing climate-related financial and operational risks. FIO has examined climate-related risks in insurance supervision and the affordability and availability of homeowners insurance. For ClimaTwin, the common thread is the need to connect hazards to insured properties, borrowers, collateral, operations, premiums, claims, and resilience.
How It Works
The five U.S. insurance-risk evidence areas are:
- Insurer governance and strategy for climate-related financial risk.
- Physical-risk exposure for insured properties, investments, operations, and counterparties.
- Banking and mortgage risk where climate hazards affect collateral, borrower finances, and operations.
- Insurance affordability and availability signals, including nonrenewal, premium pressure, and coverage constraints.
- Risk-management documentation that explains assumptions, data, scenarios, limitations, and adaptation measures.
ClimaTwin’s Climate Business Intelligence™ supports these areas by translating flood, wildfire, heat, storm, water, and coastal hazards into evidence of property and portfolio risk.
Limitations
U.S. insurance regulation is state-based, and requirements vary by jurisdiction and institution type. FIO reports inform policy and market understanding but are not the same as state regulatory requirements. ClimaTwin supports risk evidence, but underwriting, premium setting, reserves, and legal reporting require qualified review.
Frequently Asked Questions (FAQs)
- What is the NAIC Climate Risk Disclosure Survey? It is a state insurance regulator risk-management disclosure tool aligned with TCFD.
- What does NY DFS guidance address? It addresses material financial and operational risks from climate change for regulated financial institutions.
- Why does FIO matter? FIO analyzes climate-related risks to insurance supervision, homeowners insurance affordability, availability, and market resilience.
- What are the five U.S. insurance-risk evidence areas? Governance, physical exposure, banking and mortgage risk, insurance availability, and risk-management documentation.
- How does ClimaTwin support insurers and lenders? ClimaTwin connects hazards to properties, portfolios, borrowers, claims context, insurance implications, and resilience priorities.
Sources
- National Association of Insurance Commissioners. (n.d.). Climate Risk Disclosure Survey.
- New York Department of Financial Services. (n.d.). Climate Change.
- U.S. Department of the Treasury. (2025). Homeowners insurance costs rising, availability declining as climate-related events take their toll.
- U.S. Department of the Treasury. (2023). Treasury Federal Insurance Office releases report on insurance supervision and climate-related risks.
Ready to get started? To learn how ClimaTwin can help you assess the physical and financial impacts of future weather and climate extremes on your infrastructure assets, capital programs, and investment portfolios, please visit www.climatwin.com today.
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