FIO joins global green initiative

Federal Issues Department of Treasury Climate-Related Financial Risks Risk Management Insurance

On February 17, the U.S. Treasury Department’s Federal Insurance Office (FIO) announced that it joined the Network of Central Banks and Supervisors for Greening the Financial System (NGFS). As previously covered by InfoBytes, Treasury announced in August 2021 a request for information seeking public comments on the FIO’s future work related to the insurance sector and climate-related financial risks. This was in response to an executive order issued by President Biden instructing financial regulators to mitigate climate-related risk related to the financial system (covered by InfoBytes here). According to the recent announcement, the FIO “intends to publish a climate report by the year’s end focusing on insurance supervision and regulation, with an assessment of climate-related issues or gaps in the supervision and regulation of insurers, including their potential impacts on U.S. financial stability.” The same day, the Federal Advisory Committee on Insurance (FACI), which provides advice and recommendations to assist the FIO in carrying out its statutory authorities, launched the Climate Related Financial Risk Subcommittee to support the FACI provision of information relevant to the FIO’s work on climate-related risks in the insurance sector.