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LD 1674

An Act To Require Insurers To Address Climate Risk In Their Business Activities

132nd Legislature (2025-2026) Introduced by Matt Beck and 4 co-sponsors

Bill would require Maine insurers to assess and publicly report climate risks to their business operations, but died in committee with "Ought Not to Pass" recommendation.

Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD)
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Bill Summary · LD 1674

Legislative bill overview

LD 1674 would have required insurance companies operating in Maine to assess and disclose how climate risks affect their business operations and investments. The bill aimed to make insurers more transparent about their exposure to climate-related financial risks and potentially influence how they price policies and manage their portfolios in response to climate change.

Why is this important

Climate change poses significant financial risks to insurance companies through increased claims from weather disasters, property damage, and other climate-related events. Requiring disclosure of climate risk could help regulators, policyholders, and investors understand whether insurers are adequately prepared for future climate impacts and could influence insurance availability and pricing in Maine.

Potential points of contention

  • Regulatory burden: Insurance companies argue that additional climate risk assessment and reporting requirements increase operational costs that may be passed to consumers through higher premiums
  • Market competitiveness: Insurers may claim that detailed climate risk disclosures could disadvantage Maine-based companies compared to competitors in states with fewer requirements
  • Definitional challenges: Questions about what constitutes "climate risk," how to measure it, and what disclosure standards should apply could create compliance ambiguity

Compiled from official sources — confirm details with the bill’s official record.

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