Federal Insurance Office Gently Turns Up The Heat On Global Warming

In a recent notice to the industry the Federal Insurance Office (‘FIO’) set forth a series of requests to both life and property/casualty insurers for information as to the impact of climate change on both their insurance risks and asset valuations affecting their solvency.

The FIO asked insurers and other interested persons to submit their comments by November 15, 2021.

Created as part of the Department of the Treasury by Section 502 of the Dodd-Frank Act, the FIO acts essentially as the federal government’s clearinghouse for information on the insurance industry, and advises the federal Financial Stability Oversight Council (‘FSOC’) which insurers, if any, should be subject to enhanced supervision by the Federal Reserve Board.

The FIO, however, has no power itself to regulate the operations and financial condition of insurance companies.

The agency has the specific statutory authority to request information from insurers, and can also, in rare instances, issue subpoenas provided that, first, its director make a written finding that the information is necessary for the FIO to execute its statutory functions and, second, that the data sought is not otherwise available from public or insurance regulatory sources.