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U.S. Financial Regulators Warn of Impacts to Insurance as Climate Crisis Deepens

WASHINGTON, D.C. – In the public session of today’s Financial Stability Oversight Council meeting, the Council released its 2023 annual report, affirming the risks to the financial system posed by climate change. In the meeting, Secretary of the Treasury Janet Yellen stated “Since first identifying climate change as an emerging threat to U.S. financial stability two years ago, the Council and its member agencies have significantly increased their capacity to evaluate and address climate-related financial risks.” In response to the report from FSOC, Anne Perrault, senior climate finance policy counsel with Public Citizen issued the following statement: 

“Climate change is heightening an insurance protection gap that significantly impacts the financial health of a growing number of individuals and communities—particularly low and moderate-income communities and communities of color. Without adequate insurance, these individuals will increasingly struggle to pay their bills—heightening risks for lenders and other financial entities. Climate change-related threats to financial stability are growing, and urgent action by FSOC and regulators is long overdue.” 

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