The state of Minnesota has joined four other states, California, Connecticut, New York and Washington in requiring their insurance companies to inform the public of how much they have prepared for climate change.
Approximately 70 companies will be participating in an eight-question survey developed by the National Association of Insurance Commissioners (NAIC) which will assess climate change risks as well as the efforts the companies are making towards being prepared for climate change. The companies are required to respond to the surveys by August 31.
Unlike the other four states, Minnesota does not face risks of coastal storms. However, Minnesota State Insurance Commissioner, Mike Rothmann said the state faces other risks such as tornadoes, severe storms, and floods, which some research has revealed are becoming more common as the climate gets warmer.
“My perception is that we’ve seen some frequency changes with those events,” Rothmann said. “We want to make sure companies and policyholders have the best protection possible.”
To learn more about how insurance companies are dealing with climate change click here.