Dear John,
For every news story about a fire, flood, or storm devastating communities in the U.S., there is a headline announcing another insurance company has pulled out of a “high risk” area. Recently numerous insurers have withdrawn from or stopped writing new policies in states including California, Florida, and Louisiana.
In the face of increasing climate disasters, the decision to cease writing new policies is not the long-term solution. Insurers are critical risk managers for our society. They have a role to play in facilitating a just transition that reduces risks and increases preparedness and resilience.
Our team at the Ceres Accelerator for Sustainable Capital Markets is ramping up our efforts to improve disclosure and transition strategy in the insurance sector. Recently, we published two cutting edge reports that provide critical research, analysis, and recommendations. |
The Changing Climate for Insurance Investments
(August 2023)
Conducted with the SustainAbility Institute by ERM and Persefoni, this first-of-its-kind research reveals that the top 16 U.S. insurers alone hold more than 50% of the half trillion dollars in fossil fuel-related assets owned by the sector. The report highlights the impact of insurance company investment decisions on climate change and the role they could play in reducing systemic climate risk. |
Climate Risk Management in the U.S. Insurance Sector
(July 2023)
The National Association of Insurance Commissioner’s (NAIC) 2021 Climate Risk Disclosure Survey aligned with the framework of the Task Force on Climate-related Financial Disclosures (TCFD) for the first time since the survey's launch in 2010. This report from Ceres and the California Department of Insurance offers the first comprehensive review of over 400 insurance company responses to provide insights into trends and recommendations for improved disclosure. |
With these two invaluable resources, we are encouraging insurance companies and their regulators to address the growing climate risk. We encourage you to reach out to your own insurance company—home, auto, life, etc.—and ask what they are doing to address the climate crisis. Send them these reports and express your desire to ensure that the companies you’ve trusted to protect your assets are playing their part to reduce climate risks and accelerate a low-carbon transition. |