Caroline Nagy, AFR’s Senior Policy Counsel, Testifies Before the HFSC, Housing and Insurance Subcommittee
Today, Our Senior Policy Counsel, Caroline Nagy, testified before the HFSC, Housing and Insurance Subcommittee titled “How Mandates Like ESG Distort Markets and Drive Up Costs for Insurance and Housing.”
Nagy addressed how housing and climate change crises are leading to unaffordable housing and insurance costs for working people, insurers are raising rates and withdrawing coverage due to climate-exacerbated disasters, high rents and rising home prices are making housing unaffordable for many, insurance costs impact monthly housing expenses and the ability to recover from damages. She also explained how ESG mandates are not the main driver of insurance unaffordability, climate change, rising reinsurance rates, and unsustainable land use practices contribute to increased costs.
Lastly, Nagy pointed out the importance of supporting climate financial regulatory efforts and managing climate financial risks, improving data collection on insurance trends and consumer harm, establishing a public reinsurance program and promoting climate resilient communities, implementing tenant protections, addressing private equity abuses, and providing federal support for affordable housing initiatives.