On November 2, 2023, the Federal Insurance Office (FIO) in the Department of the Treasury announced its intent to collect granular information about climate-related physical risks from private sector insurers. The goal of this information collection is to understand how climate-related financial risks impact families and individuals across the United States and how these effects could impact the broader financial system.
The Federal Insurance Office Act of 2010 (FIO Act) authorizes FIO to monitor all aspects of the insurance sector, and charges FIO with identifying regulatory gaps that could contribute to a systemic crisis in the insurance sector or the U.S. financial system. The FIO Act also authorizes FIO to collect data and information on and from the insurance industry and insurers. Under the Paperwork Reduction Act of 1995, information collections such as this one must be reviewed by the Office of Management and Budget (OMB) prior to taking effect.
Under this authority, FIO is collecting an array of data from the insurance industry that will enable FIO to assess the impact that climate-related physical risks have had on the homeowners insurance market since 2017 at a ZIP Code level. FIO asserts that this nationwide view of homeowners insurance is critical to understanding how climate-related financial risks impact families and individuals across the United States and how these effects could impact the broader financial system.
FIO is accepting public comments on its submission to OMB until December 4, 2023.