The insurance industry is losing access to a long-standing tool for gauging the economic toll of extreme weather events. The National Oceanic and Atmospheric Administration (NOAA) has announced it will no longer update its Billion-Dollar Weather and Climate Disasters database, a move that comes amid broader federal budget cuts to climate initiatives.

A Trusted Resource Comes to a Close

Since its inception in 1980, NOAA’s Billion-Dollar Disasters database has documented 403 events that each caused at least $1 billion in economic damage. The tool has become a trusted benchmark not only for policymakers and the public but also for insurers tracking the scale and frequency of catastrophic weather events.

NOAA’s announcement, made quietly on May 8 via a “notice of change” on its website, cited “evolving priorities, statutory mandates, and staffing changes” as reasons for the discontinuation. Although the data will remain archived and accessible online, it will no longer be updated going forward.

The Role of the Database in the Insurance Sector

Mark Friedlander of the Insurance Information Institute emphasized that while NOAA’s data is valuable, the property and casualty (P&C) insurance industry has independent mechanisms for tracking covered losses. Importantly, NOAA’s database includes total economic losses, not just insured losses, providing a broader perspective on the financial burden of disasters.

Even without NOAA’s updates, Friedlander reassured stakeholders that this change will not affect the availability of property insurance or how storm claims are processed. “Insurers will continue to act as financial first responders,” he said, highlighting the industry’s role in disaster recovery efforts.

A Sign of Broader Climate Funding Cuts

NOAA’s decision is part of a larger trend of reduced federal support for climate-related programs. The White House’s April budget proposal included a plan to remove an entire wing of NOAA, slashing the agency’s funding by nearly $1.7 billion, or 27%. On the same day as the database announcement, FEMA’s acting director, Cameron Hamilton, was ousted after opposing similar cuts and defending the agency’s preparedness efforts for the upcoming hurricane season.

What Happens Next?

The loss of regular updates from NOAA’s disaster database leaves a gap in a widely cited, government-backed source of economic data on climate catastrophes. While the insurance industry has its own data sources, NOAA’s reports helped contextualize total losses, offering insight into the scale of damage beyond just the insured segment.

This development may prompt insurers, reinsurers, and risk analysts to rely more heavily on private and proprietary data platforms. It could also renew calls for public-private collaboration to ensure transparency and consistency in climate risk modeling, especially as extreme weather events grow more frequent and costly.

Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.

Global banking regulators are stepping up efforts to deepen their understanding of climate-related financial risks, with renewed attention to the implications of extreme weather events on financial stability. This comes as part of a broader debate among global policymakers regarding how climate change should intersect with central banking and financial regulation.

A Renewed Priority from the Basel Committee

On Monday, the oversight body of the Basel Committee on Banking Supervision — an influential international forum for banking regulators — met to review progress on climate-related risk initiatives. According to a statement from the Bank for International Settlements, the group agreed to prioritize efforts that examine how extreme weather events could impact financial institutions and broader markets.

As part of this initiative, the committee announced plans to release a voluntary disclosure framework on climate-related financial risks. While the Basel Committee does not have formal regulatory authority, its guidelines are widely adopted and have a significant impact on national banking regulations worldwide.

Diverging Regulatory Approaches

The move reflects growing momentum in some parts of the world to integrate climate change into financial oversight. European regulators, in particular, have taken an assertive stance. The European Central Bank has made climate risk management a core supervisory priority, and national regulators across the EU continue to expand their oversight in this area.

In contrast, the U.S.'s new administration has shown increasing reluctance to embed climate considerations into financial regulation. The U.S. Federal Reserve has conducted preliminary analysis on climate risks but maintains a limited scope for its involvement. Federal Reserve Chair Jerome Powell has reiterated that the Fed’s mandate restricts it from playing a central role in environmental policymaking.

Recent developments underscore this divergence. In January, the Federal Reserve withdrew from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) — an international body dedicated to addressing climate-related financial risks. The U.S. Treasury Department’s Office of the Comptroller of the Currency followed suit in March by stepping back from a joint climate risk framework, citing concerns over regulatory burdens and overlap.

Ongoing Debate and Policy Implications

The differing approaches between U.S. and European regulators reflect a broader transatlantic divide on environmental, social, and governance (ESG) priorities. In the U.S., political resistance to ESG-related policies has grown — with debates encompassing topics from fossil fuel regulation to corporate diversity initiatives.

Despite this pushback, analysts suggest that the Basel Committee's initiatives will continue to influence global standards. The committee's work is more closely aligned with European and British regulatory models — where climate risk is increasingly being woven into supervisory expectations for banks and insurers alike.

Implications for the Insurance Industry

For the insurance sector, the intensified global focus on climate risk presents both challenges and opportunities. Insurers are already on the front lines of managing the financial consequences of extreme weather events. As global regulators push for greater climate risk transparency and scenario analysis, insurers may need to expand their risk modeling capabilities and reevaluate underwriting practices.

The ongoing policy divergence also means insurers operating across jurisdictions will need to navigate a complex regulatory environment, balancing different disclosure expectations and risk assessment frameworks.

As the Basel Committee advances its work, the insurance industry will be watching closely to assess how future standards may shape long-term strategies for climate resilience, regulatory compliance, and capital planning.

Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.

More than 400 independent agents, industry leaders, carrier and vendor partners gathered last week at Legacy West in Plano for the second annual Lone Star Summit, hosted by Texas’ four SIAA master agencies — Texas Agency Alliance (TAA), South Texas Agency Alliance (STAA), Insurance Agents Alliance of Texas (IAAT), and CoVerica Agency Alliance. The multi-day event, held April 30–May 2, featured educational sessions, collaborative discussions, and recognition of outstanding member agencies, reinforcing the Summit’s role as a valuable forum for driving independent agency growth and success.

Celebrating Community and Emerging Talent

A highlight of the conference was Thursday’s Community Impact Luncheon, where attendees turned their attention to giving back and shaping the industry’s future. Rodney Watkins, President of IAAT, was recognized with the 2025 Community Star Award for his commitment to community and advancing young talent. Watkins has worked closely with Liberty Mutual & Safeco to help implement the Emerging Talents Program (CISR High School Program) at Mineola High School, administered by the Insurance Risk & Education Alliance. The luncheon also featured Mineola High School students and the school principal, who joined the stage to share their firsthand experiences with the program — highlighting the meaningful impact of exposing young people to the fundamentals and career possibilities in insurance.

Recognizing Member Agency Achievements

The Summit also celebrated the success of member agencies across Texas. Awards were presented for top premium growth, rising stars, and agency leadership — highlighting the continued strength and performance of independent agencies in a competitive market. Through networking, knowledge sharing, and celebration, Lone Star Summit 2025 reflected the strength and forward momentum of Texas’ independent agency community. About SIAA SIAA is The Agent Alliance – the nation's leading network of starting, growing, and evolving independent insurance agencies. Leveraging a platform of strategic partners, $16.7 billion in premiums, and 49 Master Agencies, the Alliance supports and inspires member agents so they can continuously adapt to an ever-evolving industry and achieve long-term success. SIAA members benefit from the resources of scale and the freedom of independence. Get the latest insurance market updates and discover exclusive program opportunities at ProgramBusiness.com.