Climate Change Financial Risk Prompts Treasury to Seek Remedies

The Treasury Department’s first-ever attempt to pinpoint where property isn’t insured against climate risk suggests a potential willingness on the government’s part to protect businesses and homeowners from catastrophic losses.

The department’s Federal Insurance Office has proposed requiring big property insurers, who write over $100 million in annual premiums, to submit claim data in every zip code for the last five years.

The proposal, which grew out of President Joe Biden’s May 2021 executive order on climate risk, could ultimately lead to federal or state insurance programs, particularly to support vulnerable communities, attorneys say.

The Treasury is “looking for a ...