Climate Risk and
State Insurance Policy

Insurance is a key channel through which climate risk is transmitted through the financial system, and it is almost entirely regulated at the state level...

As the climate crisis has intensified, insurance markets have begun to dysfunction, and consumers have suffered from insurance company withdrawals, premium spikes, cancellations, and other hazards.

In this overview, we review numerous state policy developments, define and describe several key terms and trends, summarize important policy recommendations from the Federal Insurance Office (FIO), and suggest helpful policy interventions for state policymakers to consider.