Hot Air: The Impact on the Insurance Industry from Climate Change Disclosure Rules

Abstract

This article addresses certain recent rules and regulations promulgated by the Securities and Exchange Commission requiring companies to disclose the risks presented to their business from climate change. It subsequently examines how these added risks may impact the insurance industry—specifically with regard to director and officer liability. In the author's view, climate change will bring a tectonic shift to industries worldwide and a potential avenue for liability in the insurance industry may be able to circumvent standard pollution exclusion language by making claims under director and officer policies.