Legislator: U.S. Insurers Ignore Climate Issue
NU Online News Service, Nov. 15, 12:05 p.m. EDT?A campaign by a veteran New York Assemblyman to have U.S. insurers address the effects of global warming, is drawing a lackluster reaction, an aide said.[@@]
Only "a handful" of insurers have responded to a survey sent out by Assembly Committee Chairman Alexander Grannis, D-Manhattan, asking what carriers are doing on the issue, according to Christine Olli, the committee's associate director.
In his letter asking a response to eight questions, Mr. Grannis said he had a "deep concern that insurers need to be ahead of the curve on this issue.
"The increasing frequency and severity of climate change related weather losses has obvious implications for company solvency, product pricing and availability of coverage."
Mr. Grannis' letter noted that natural disaster losses are doubling every 10 years and that 86 major insurers from 27 countries have signed the United Nations Environment Programme Insurance initiative on Sustainable Development and the Environment. But only one U.S. firm, Bank of America, has signed, his letter said.
The UNEP initiative signers commit to addressing pollution reduction and identifying solutions to mitigate and address climate change impacts.
Among the questions Mr. Grannis asked in his survey was whether the insurer has evaluated "risks associated with climate change such as directors and officers' exposure to shareholder suits or risk to investment holdings that might be adversely impacted by climate change, including those from regulatory actions targeting the causes of global warming. If so, how? If not, why?"
His survey also asks what companies were doing to improve energy use efficiency, and if they had taken a position on the Climate Stewardship Act addressing global warming introduced by U.S. Sens. John McCain, R-Ariz., and Joseph Lieberman, D-Conn.
Ms. Olli said that when Mr. Grannis held proceedings on the climate effects question, insurers "interest in the hearings we had was non-existent. Insurers have no clue."
She said that global warming has also drawn the interest of New York City Comptroller Alan Hevesi, who has sent follow up letters to insurers urging a response to the survey.
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