Connecticut Expects Insurers to Comply with Climate Risk Guidance by Jan. 1st
Connecticut Expects Insurers to Comply with Climate Risk Guidance by Jan. 1st
Connecticut Expects Insurers to Comply with Climate Risk Guidance by Jan. 1st
On September 15, 2022, the Connecticut Insurance Depart (CID) issued Bulletin No. FS-44 to provide guidance for Connecticut domestic insurers on managing the financial risks of climate change, consistent with the objectives of June Special Session, Public Act No. 21-2, Section 312, (PA 21-2).
PA 21-2 requires the CID to file biannually a report with the Connecticut General Assembly disclosing the Department’s progress toward addressing climate-related risks within the insurance industry along with regulatory and supervisory actions to bolster the resilience of insurers to the physical impacts of climate change.
The CID expects insurers to take a strategic approach to managing climate risks that considers both current and future risks and identifies actions necessary to manage those risks in a manner proportionate to the nature, scale, and complexity of insurers’ businesses. Bulletin No. FS-44 outlines the CID's expectations and guidance, including: (1) risk culture and governance; (2) risk management and controls; and (3) public disclosure.
The Department expects domestic insurers to implement its expectations relating to board governance and to have specific plans in place to implement the expectations relating to organizational structure by January 1, 2023. The Department understands that more complex expectations, such as those relating to risk appetite and public disclosure, may take longer to implement. The CID may issue further guidance on the timing for implementation of these more complex expectations but encourages insurers to start working on them now.
For more information regarding the Bulletin, please contact cid.financial@ct.gov.