Highlights from the 2023 US NAIC Summer National Meeting: Environmental, Social, and Governance (ESG) – Insurance Laws and Products

Special Committee (EX) on Race and Insurance

At its meeting on August 14, 2023, the Research and Development Committee received updates from US health insurance plans on health equity and from the Member Diversity Leaders Forum. The latter is a forum for state insurance regulators to share Diversity, Equity, and Inclusion (“DE&I”) best practices and discuss ways in which DE&I matters can be addressed; The update in this meeting discussed ongoing DE&I meetings for regulators, sharing of DE&I best practices nationally and internationally, as well as training sessions for regulator diversity.

Additionally, the R&D Committee has received reports from the Property/Injury and Life and Health workstreams, which investigate issues such as algorithm bias, unfair underwriting and rating bias, and issues related to minority communities throughout the product lifecycle (i.e. from marketing/access to insurance through underwriting/classification, claims processing and fraud detection), preventive care and mental health coverage.

Climate and Resilience Task Force (EX).

At its meeting on August 15, 2023, the Liability and Liability Task Force heard a presentation from the Julie Ann Wrigley Global Futures Lab at Arizona State University regarding global warming, its impacts on rising sea levels, and other catastrophic risks. In addition, the Liability and Liability Task Force heard a presentation from Ceres, a non-profit organization, on universal insurance (which covers issues such as the protection gap and the introduction of universal insurance including through innovative products such as microinsurance and parametric insurance) and disclosure on climate risks. The California Department of Insurance also gave a presentation to the C&R task force on weather storms in the western states. Finally, the C&R task force received an update from its Solvency Workstream, which focused on the financial impact on insurers from climate change and referrals to other NAIC groups for further work in this area.

Property and Casualty Insurance Committee (c).

The Property and Accident Committee announced at its August 15, 2023 meeting that the NAIC Drafting Group is developing a data call to collect property insurance data to help the Property and Casualty Committee better understand the property insurance markets and insurance protection gaps, including with regard to availability and affordability. Insurance costs. Severe weather events, rising reinsurance costs, and inflation are driving up insurance availability and affordability concerns across the United States, including variations in different regions of certain states. The data model will be developed to meet the specific needs of state insurance regulators with the aim of having a robust long-term data collection strategy to assist regulators in assessing and responding to protection gaps, availability and affordability.

To view additional updates from the US NAIC Summer 2023 National Meeting, Visit our Meeting Highlights page.

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