MA| The Massachusetts Division of Insurance (DOI) issued Bulletin 2024-11 to provide guidance for domestic insurers on managing financial risks associated with climate change. The bulletin outlines expectations for insurers to integrate climate risk into governance, risk management, and public disclosure practices proportionate to their business scale and complexity.
Key Points:
- Governance and Risk Management: Insurers must incorporate climate risks into their governance structures, enterprise risk management frameworks, and decision-making processes, ensuring board oversight and scenario analysis to address both physical and transition risks.
- Materiality Assessment and Proportionality: Insurers should assess the materiality of climate risks annually, using qualitative and quantitative methods as expertise develops, while tailoring approaches to their unique business profiles and resources.
- Public Disclosure: Insurers are expected to publicly disclose climate-related risks through frameworks like the NAIC Climate Risk Disclosure Survey or other appropriate channels, ensuring transparency for stakeholders.