At a glance
- The rule names health, life and annuity, and property and casualty insurers among affected lines, and its summary indicates the emerging-risk list continues beyond climate, AI and cyberthreats.
- The rule applies only in California.
- For insurers' general-account investment teams, the open question is whether the assessment reaches asset-side exposures such as AI-related credit concentration and climate-sensitive holdings, or stays with underwriting and enterprise risk.
The California Department of Insurance said it finalized Long-Term Solvency Regulations that require insurers to assess emerging risks from climate, artificial intelligence and cyberthreats, AM Best News reported on Oct. 28.
The rule names health, life and annuity, and property and casualty insurers among affected lines, and its summary indicates the emerging-risk list continues beyond climate, AI and cyberthreats.
The rule applies only in California. For insurers' general-account investment teams, the open question is whether the assessment reaches asset-side exposures such as AI-related credit concentration and climate-sensitive holdings, or stays with underwriting and enterprise risk.
Reported by the Insurance regulation desk from AM Best News. Published . Corrections