Consumer Watchdog blasts insurance industry over fossil fuel investments

MOST OF THE BIGGEST U.S. insurance companies have significant investments in the fossil fuel industry, despite concerns that insurance companies are paying out higher amounts in claims due to global warming, according to recent findings by Consumer Watchdog. / BLOOMBERG NEWS FILE PHOTO/LUKE SHARRETT

PROVIDENCE – While many in the insurance industry lament the impacts of global warming, the nation’s top insurance companies remain heavily invested in the fossil fuel industry, according to the recent findings of Consumer Watchdog, a nonprofit politically progressive organization that advocates for taxpayer and consumer interests.

The debate over global warming and what causes it has continued. Still, the 10 largest U.S. insurance companies collectively hold more than $50.9 billion in so-called fossil fuel investments, despite mounting evidence that the burning of fossil fuels exacerbates climate change, according to the group’s review of public filings.

The Los Angeles-based group said nine of the big 10 insurance companies have considered the impact of climate change on their investments, but only two – American International Group Inc. and Farmers Insurance Group – have said they have altered their investment strategy in response.

“Insurance companies’ response to climate change should be to side with the victims, not support the perpetrators,” Consumer Watchdog President Jamie Court said in a statement.

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“What if hospitals sold crack? Doctors offered cigarettes in their waiting rooms? And firefighters gave out flamethrowers?” Court added. “Insurance companies are paying unprecedented claims because of global warming, and they need to be part of the solution if the [United Nations’] call to action [over global warming] is to be realized.”

Insurance companies disclosed their investments and policies in the climate-risk disclosure survey to the National Association of Insurance Commissioners, the group said.

According to Consumer Watchdog, the eight of the top insurance companies that don’t consider climate change in their investments are: State Farm, Allstate Corp., Liberty Mutual Insurance, Berkshire Hathaway Inc./Geico, Travelers Cos., Nationwide Mutual Insurance Co., Progressive Corp., and United Services Automobile Association. The group said only one U.S. insurance company, Lemonade Insurance Co., has taken the pledge not to support fossil fuels.

In September, a new coalition of public interest groups called Insure Our Future called upon U.S. insurance companies to follow their European counterparts and divest from coal and tar sands companies, and to make plans to stop underwriting “extreme” fossil fuel projects.

“Insurance companies should not be betting against their policyholders,” said Michael Mattoch, counsel for Consumer Watchdog.

Scott Blake is a PBN staff writer. Email him at Blake@PBN.com.

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