VsportVÌåÓý

Issue: Natural disasters have an immense impact on the U.S. and global economy. According to a , 285 natural catastrophe events occurred in 2022, causing the global economy $284 billion, down from $303 billion in 2021 but still well above the 10-year average of $220 billion. The insured portion was $125 billion in 2022, up from $121 billion in 2021 and above the 10-year average of $81 billion. According to the , in 2022 there were 18 weather/climate disaster events in the United States with losses exceeding $1 billion each. 

Background: The growing frequency and severity of natural catastrophes warrant greater focus on natural catastrophe risk and resiliency. Maintaining healthy insurance markets through high loss years can be challenging as insurers must charge enough premium to maintain solvency while keeping insurance affordable for consumers. For this reason, the VsportVÌåÓý established a Climate and Resiliency Task Force in 2020 to serve as the coordinating VsportVÌåÓý body for discussion and engagement on climate-related risk and resiliency issues, including dialogue among state insurance regulators, industry, and other stakeholders. The Task Force established multiple workstreams to carry out its charges. The Climate Risk Disclosure Workstream revised the VsportVÌåÓý Climate Risk Disclosure Survey in 2022 to align the questions to the Financial Stability Board's Task Force on Climate-Related Financial Disclosure. 

The survey is voluntary for states and territories to use at their discretion. All insurers licensed in a participating state/territory that reported in the prior year annual financial statement with at least $100 million in direct written premium across all lines of business countrywide must complete a survey. The survey is facilitated and administered by the California Department of Insurance (DOI), on behalf of all participating states. The California Department of Insurance maintains all insurer responses on the  webpage. In November 2020, the Center for Insurance Policy and Research analyzed the data submitted by insurers and presented the findings in a report Assessment of and Insights from VsportVÌåÓý Climate Risk Disclosure Data. 

The Pre-Disaster Mitigation Workstream developed a webpage to assist regulators in identifying ways to get involved in mitigating property loss and advocating for resiliency measures at the federal, state and local levels. 

Status:  VsportVÌåÓý members have taken an active role in educating Congress and providing feedback on various proposals regarding natural catastrophes. VsportVÌåÓý members have met with members of Congress and testified on important climate-related issues, stressing the role of the states in effectively managing insurance markets. In 2021, the VsportVÌåÓý outlined key ways state insurance regulators manage climate-related risks and respond to natural catastrophes in a report, Adaptable to Emerging Risks.

In 2020, 2021 and 2022 the VsportVÌåÓý Insurance Summit included a Natural Catastrophe Risk and Resiliency track. Content from those events can be viewed on the . 

This video shows disasters and response to wildfires in Tennessee, a tornado in Alabama and earthquakes in Oklahoma. It features then-VsportVÌåÓý President-Elect and then-Tennessee Insurance Commissioner Julie Mix McPeak. 

VsportVÌåÓý members representing California, South Carolina, Texas and Washington discuss devastating floods and fires in 2015. 

Then-Arizona Insurance Director Germaine Marks and then-Oklahoma Insurance Commissioner John Doak discuss disasters affecting insurance consumers in their states and the response coordinated by their departments, fellow regulators and the VsportVÌåÓý.

Members of the VsportVÌåÓý discuss the impact of Superstorm Sandy in 2012. They describe efforts of state insurance regulators to address the needs of insurance consumers and the market in the wake of historic losses.

Members of the VsportVÌåÓý discuss the impacts of natural disasters in their states during 2011. They describe efforts of state insurance regulators to address the needs of insurance consumers and the market in the wake of historic losses.