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Managing Climate Risk

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

Horace Mann recognizes climate risks as discussed in science-based literature is a concern. As an insurer, investor, employer and corporate citizen, we continually work to better understand and manage climate risks that directly affect the insurance industry, as well as our customers, insurance products and portfolio of investments. We understand the significance of the TCFD and CDP frameworks, and are currently evaluating our potential gaps and data needs as we prepare to comply with applicable laws and regulations. We already report some of the elements of TCFD, such as our ESG investment strategy and our Scope 1 and Scope 2 carbon emissions.

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 reinsurance program as an additional layer of protection against large property-casualty catastrophe losses. Our 2023 coverage for $30 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. We work every day to protect our customers’ property and help them recover from hurricanes, windstorms, hail, severe winter weather, wildfires and earthquakes.

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.