Here in Vermont, inland flooding from Hurricane Irene resulted in 13 counties being declared a disaster zone. In his request for the declaration, Governor Peter Shumlin stated, "At the height of the storm's impact, there were 15 Vermont communities completely cut off by flood waters or failed infrastructure."

The estimated cost of public assistance for recovery from the storm, Shumlin continued, will be in excess of $11 million. His request also noted that Vermont has experienced a number of weather-related disasters during the past nine months.

In a press conference held yesterday to announce the publication of a new report, Sharlene Leurig, senior manager of the insurance program at Ceres and author of the report, stated, "2011 has been a painful and important reminder that changing climate will inflict damage across the U.S. Even before Hurricane Irene, insured losses in the U.S. this year were 40 percent higher than in the entire year of 2010."

The report, entitled "Climate Risk Disclosure by Insurers: Evaluating Insurer Responses to the NAIC Climate Disclosure Survey," studies the preparedness of the insurance industry for the impacts of climate change. Its finding, Leurig said, "That insurers are concerned about climate risk but don't understand what to do about it, underscores the need for sustained engagement by regulators and shareholders."

As the basis of its analysis, Ceres used the responses of 88 insurers to the 2010 Insurer Climate Risk Disclosure Survey of the National Association of Insurance Commissioners (NAIC). At present, only six states -- New York, New Jersey, California, Oregon, Pennsylvania, and Washington -- require public disclosure by insurers of their responses to the survey.

"The NAIC survey, while incomplete, provides an unprecedented view into climate risk perception and management within the insurance industry," the report stated. "The survey responses paint a picture of an industry that, outside of a handful of the largest insurers, is taking only marginal steps to address an issue that poses clear threats to the industry's financial health, as well as to the availability and affordability of insurance for consumers."

"There is a consensus among insurers that climate change will drive more frequent or severe losses from extreme weather," Leurig said during the press conference. "Despite that consensus, the number of insurers with well-articulated plans to manage these impacts is disappointingly low."

The report found that only 11 of the 88 respondents have formal climate change policies in place, and more than 60 percent report that they have no risk management plan for assessing climate risks. Large property and reinsurance companies fared best in the survey, with several of them "investing considerable resources into understanding the risks and developing strategies that may drive more climate-resilient underwriting practices and capital decisions."

However, Leurig observed, "Among 18 property and casualty companies, none have formal climate change policies or explicit board or executive oversight of climate risk."

Furthermore, "While more than half the insurers discuss potential financial risks from climate change," Leurig continued, "only 18 percent outline the way their company is adapting in capital allocation or pricing to mange those risks."