This study examines the effects of climate-related financial disclosure on financial performance and firm value in Taiwan’s insurance industry. Using a climate-related disclosure similarity score (CCSS) to measure the extent of disclosure, we find that such disclosures do not directly improve short-term financial performance. However, the CCSS has a positive effect on Tobin’s Q, suggesting that climate-related financial disclosures reduce information asymmetry and, in turn, enhance firm value. Overall, because insurance companies’ financial positions are directly and significantly exposed to climate-related risks through their coverage of both individuals and businesses, comprehensive climate-related financial disclosures serve as a tool to build investors’ confidence in firms’ ability to manage climate-related risks and opportunities, which is crucial for insurers’ sustainable development.