Bessie Antin Daschbach Analyzes Economic Risks for Insurers Revealed by New Climate Stress Test Conducted by State Regulators

February 14, 2024

Bessie Antin Daschbach was recently featured in a Law360 Insurance Authority story, reviewing the potential economic risks for insurers in relation to climate transition plans. These risks highlight the need for further stress tests to understand how climate scenarios could impact insurers' risk portfolios.

Daschbach told Law360 that a stress test conducted by top regulators in California, Oregon, and Washington last week helped emphasize the importance of being able to identify, track, and manage environmental, social, and governance (ESG) risks.

She added that this testing suggests "there is evidence that climate's presenting risk, it's presenting physical risk, it's presenting transition risk, and that businesses need to be at liberty to manage that risk so that they can adhere to their fiduciary obligations."

Daschbach noted that the test was conducted against a backdrop of anti-ESG political backlash aimed at preventing asset managers and investors from factoring ESG risks.

Read the full article (subscription required).

"Three-State Test Critical To Evaluating Carrier Climate Risk" was published by Law360 Insurance Authority on February 12, 2024.

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