We continually work to better understand and manage climate risks that directly affect our stakeholders.

Climate change is an important issue for the insurance industry and is top-of-mind for Horace Mann. As an insurer, investor, employer and corporate citizen, we recognize climate change as a growing concern, and continually work to better understand and manage climate risks that directly affect our customers, insurance products and portfolio of investments.

Our Board of Directors oversees our Enterprise Risk Management Committee’s risk assessments and risk mitigation strategies, including recommended actions to address climate change risks. These actions include:

  • Managing climate risks. Our ongoing risk assessments help us improve the accuracy of our climate-related risk models, refine how we price and underwrite policies, and avoid an overconcentration of insurance coverage and investments in geographies likely to be affected by climate risk. We also have in place a conservative reinsurance program as an additional layer of protection against large property-casualty catastrophe losses. Our coverage for $25 million to $175 million of losses shares the risk with other insurance companies.
  • Mitigating climate risks. Rising temperatures and changing weather patterns in recent years are widely associated with more frequent and severe weather events and natural catastrophes, leading to higher insurance claims and costs. We have a duty to ensure we are there for our customers in the event of a loss and work every day to protect our customers’ property and help them recover from hurricanes, windstorms, hail, severe winter weather, wildfires and earthquakes. Our deep commitment to helping our customers was evident in our response to the 2018 Camp Fire in California and the subsequent launch of a pilot wildfire certification program.

We believe climate change risks must be understood, modeled and priced into our insurance products and services. They also have public policy implications, such as discouraging overbuilding in high-risk areas through flood insurance requirements and state regulatory approaches to insurance premium approvals; and modifying and enforcing building codes to better protect at-risk communities against the effects of natural catastrophes.