A friend of mine in the insurance industry sent me this:
The Minnesota Department of Commerce sent a Climate Risk Disclosure Questionnaire to Minnesota insurers yesterday and ended up on my desk. It is ridiculous.
Here’s some background to it.
Here’s the exact survey I received yesterday, it’s a pretty standard form used by other states.
Here’s how I really want to answer. I think this accurately captures how all insurance companies ought to answer.
Your friend,
[redacted]
I’ll include the survey (and my friend’s answers, in italics) below.
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Climate Risk Disclosure Survey
Question One: Does the company have a plan to assess, reduce or mitigate its emissions in its operations or organizations?
No.
Question Two: Does the company have a climate change policy with respect to risk
management and investment management? If yes, please summarize. If no, how do you
account for climate change in your risk management?
Yes, we look for industries that will are particularly vulnerable to higher taxes and fees from proposed carbon credit trading and excessive carbon taxes. In addition we are monitoring industries that are vulnerable to higher energy prices caused by an expected government policies which will force industry away from cheaper, safer, and more efficient carbon-based energy sources.
Question Three: Describe your company’s process for identifying climate change-related risks and assessing the degree that they could affect your business, including financial implications.
Since all of the scientific models predicting climate change are completely unreliable, an actuarial assessment of climate-related risks would also be completely unreliable. Therefore no financial implications can be adequately factored in to our financial modeling.
Question Four: Summarize the current or anticipated risks that climate change poses to your company. Explain the ways that these risks could affect your business. Include identification of the geographical areas affected by these risks.
Since all of the scientific models predicting climate change are completely unreliable, an actuarial assessment of climate-related risks would also be completely unreliable. Therefore no financial implications can be adequately factored in to our financial modeling.
Question Five: Has the company considered the impact of climate change on its investment
portfolio? Has it altered its investment strategy in response to these considerations? If so,
please summarize steps you have taken.
Yes, we look for industries that will are particularly vulnerable to higher taxes and fees from proposed carbon credit trading and excessive carbon taxes. In addition we are monitoring industries that are vulnerable to higher energy prices caused by an expected government policies which will force industry away from cheaper, safer, and more efficient carbon-based energy sources.
Question Six: Summarize steps the company has taken to encourage policyholders to reduce the losses caused by climate change-influenced events.
We have not taken any.
Question Seven: Discuss steps, if any, the company has taken to engage key constituencies on the topic of climate change.
None.
Question Eight: Describe actions the company is taking to manage the risks climate change
poses to your business including, in general terms, the use of computer modeling.
We are monitoring the additional carbon-related taxes and fees being imposed by all levels of government and building these into our financial models which predict higher costs of doing business and we are planning to raise our premiums to cover these additional fees.
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I think that was a perfectly useful template.