On Thursday, the Connecticut General Assembly passed a bill implementing the state budget, including a provision requiring the state insurance agency to address the climate-related risks of insurers.
The legislation would affect Connecticut-based insurers such as Travelers Cos Inc., The Hartford Financial Services Group and WR Berkley Corp.
Under Section 346 of SB 1202, the Connecticut Insurance Commissioner would be required to incorporate emission reduction targets into its oversight and regulation of Connecticut insurers.
This includes addressing the effects of thermal coal, tar sands and Arctic oil and gas, and taking regulatory and monitoring measures to strengthen insurers' resilience to the physical effects of climate change.
Legislation requires the Insurance Commissioner to submit a report to the Joint Standing Committee of the General Assembly by April 1
The report must include its progress in integrating such risks into risk-based capital requirements, regular supervisory investigations and risk and solvency assessments.
This is an "important first step … to ensure that the State Department of Insurance monitors the climate risks that insurers create with their business decisions," said Tom Swan, CEO of Connecticut Citizens & # 39; Action Group.
Section 346 contains provisions in SB 1047, a bill sponsored by Connecticut Senator Matt L. Lesser, Chairman of the Insurance Committee and the Real Estate Committee.
After that, the bill goes to the governor. Catalog