Congressman Cleaver Applauds Treasury Department’s Latest Action to Assess the Effects of Climate Risk on U.S. Insurance Markets

(Washington, D.C.) – Today, U.S. Representative Emanuel Cleaver, II (D-MO), Ranking Member of the Financial Services Subcommittee on Housing and Insurance, applauded the Department of Treasury Federal Insurance Office’s (FIO) announcement that it is launching a coordinated, first-of-its-kind effort with State Insurance Regulators and the National Association of Insurance Commissioners (NAIC) to collect insurance data to better understand the impacts of climate-related risk on insurance availability and affordability. The collected data will be the first systematic, nationwide collection of climate-related insurance data and will help policymakers across the country respond appropriately to the climate risks impacting consumers.  

“As climate change and extreme weather risk continue to intensify, families across the country are struggling to afford, and in some cases even find, homeowner insurance policies that will protect their most valuable asset without breaking the bank,” said Congressman Cleaver. “I appreciate the significant work of Director Seitz in getting to an agreement that will benefit FIO, the NAIC, states, insurance markets and American families. Across the country we are seeing insurance premiums rise with some insurers no longer offering coverage in high-risk areas. Under the agreement, the FIO is set to receive better data than its own proposal, and I look forward to closely monitoring the development of the data collection effort.”   

The NAIC will be collecting, on behalf of participating state insurance regulators, ZIP Code-level data from the largest homeowners insurers. FIO will be closely coordinating with the NAIC as the NAIC shares granular information with FIO in the coming months. The Dodd-Frank Wall Street Reform and Consumer Protection Act established the FIO within the Treasury, which has the authority to monitor all aspects of insurance, including the availability and affordability of insurance for traditionally underserved communities and consumers. As a non-voting member of the Financial Stability Oversight Council (FSOC), FIO’s Director also collaborates with, and provides advice regarding, insurance matters to FSOC and its committees. President Biden’s May 20, 2021, Executive Order on Climate-Related Financial Risk (EO 14030) called on FIO to use its monitoring authorities to assess the effects of climate change and related risks on the availability and affordability of insurance in the U.S.

FIO previously proposed to collect climate-related data directly from insurance companies, as approved by the Office of Management and Budget earlier this year. Considering the agreement by the NAIC and state insurance regulators to provide FIO with timely data comparable to its proposed collection, and to help mitigate reporting burdens on relevant insurance companies, FIO will pursue its efforts as part of the data collection collaboration with the NAIC rather than issue its own separate data collection at this time. Earlier this week, Ranking Member Cleaver joined with Democrats on the Financial Services Committee to support the Treasury Department in taking this action.

The NAIC and FIO have agreed that the NAIC will begin sending the data to FIO in June 2024, shortly after the close of the NAIC data collection. The NAIC has agreed to provide FIO with final data in late September.

Emanuel Cleaver, II is the U.S. Representative for Missouri's Fifth Congressional District, which includes Kansas City, Independence, Lee's Summit, Raytown, Grandview, Sugar Creek, Greenwood, Blue Springs, North Kansas City, Gladstone, and Claycomo. He is a member of the exclusive House Financial Services Committee and Ranking Member of the House Subcommittee on Housing and Insurance.