Establishing Committees to Manage Climate Financial Risk and Insurance Transparency.
This Act establishes two new committees within the Financial Stability Oversight Council (FSOC) to coordinate federal efforts in identifying and mitigating financial threats posed by climate change. It mandates that large financial institutions incorporate climate risk into their management practices to safeguard economic stability. Crucially, it requires the Federal Insurance Office to collect and publish granular, zip-code level data on homeowners insurance, increasing transparency regarding how climate risks affect housing costs and policy availability for citizens.
Key points
Creation of the Climate Financial Risk Committee and an external Advisory Committee to coordinate regulatory responses to climate threats across the US financial system.
The Federal Insurance Office must collect and publish detailed homeowners insurance data (premiums, claims, cancellations) disaggregated by zip code to assess climate risk impact on housing finance and affordability.
Large banking institutions (assets over $50 billion) must update supervisory guidance to actively identify and mitigate climate-related financial risks (credit, liquidity, market risks).
The FSOC must annually report to Congress on the overall impact of climate risk on US financial stability and recommend improvements to the regulatory system.
Status:
Introduced
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