Commissioner details impacts of climate change on California insurance marketplace
News: 2016 Press Release
SACRAMENTO, Calif. — As March was one of the warmest recorded months in history, and the eleventh straight month of record breaking global temperatures, Insurance Commissioner Dave Jones is using Earth Day 2016 to remind insurers and consumers of the effects climate change will have on the insurance market in California and the steps being taken mitigate that risk.
"I believe that climate change presents risks that insurance companies should consider with regard to their business operations, investment portfolio, and underwriting," said Commissioner Jones. "We should all be concerned about the impact climate change will have on the future availability and affordability of insurance coverage."
Jones has been a national and international leader regarding how insurers address climate risk in their business operations, reserving, and underwriting. In December at the United Nations Climate Change Conference of the Parties Jones joined global leaders addressing the threat of climate change and signed the Paris Pledge for Action.
In January, Jones launched his Climate Risk Management Carbon initiative. This initiative is designed to assess the risks to insurers caused by climate change, and has two significant parts, one calls on insurance companies to divest from thermal coal and the second requires insurance companies to disclose their investments in the carbon economy. The goal is to make sure insurance companies doing business in California are adequately addressing the impacts of climate change on their risk profiles.
Jones is calling on insurers to help mitigate the effects of climate change now to ensure the availability and affordability of insurance in California.
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.