Nirmal Jivan Shah •
Bad Ass Elder. Speaking Truth to Power

“As the planet warms, the insurance industry finds itself at a crossroads, entangled in a paradox of its own making. On one hand, insurers bear the immediate brunt of climate change through increased claims from natural disasters. On the other, they perpetuate the crisis by backing the fossil fuel projects driving global warming. This duality not only exposes a glaring hypocrisy but also raises fundamental questions about the role of insurers in our collective future.

Even as insurers withdraw from climate-vulnerable regions, they continue to invest in and insure fossil fuels ― the very industry at the heart of the climate crisis. This omission points to a larger, uncomfortable truth about the insurance sector’s complicity in the crisis of our time, leading us to an uninsurable future.

In May, State Farm — the largest insurer in California — stopped accepting new applications for homeowners insurance due to “rapidly growing catastrophe exposure.” In June, Allstate followed suit. In July, Farmers stopped offering home and auto policies in Florida, forcing 100,000 ratepayers to find new insurance. In October, Nationwide canceled policies for 10,500 homeowners in coastal North Carolina.

As the pool shrinks and risks increase, insurance prices rise for everyone else. Nationally, homeowners insurance premiums are up 21% from a year ago and 35% from two years ago, according to the 2023 Policygenius Home Insurance Pricing report.

Despite increasing climate risks, insurers prop up risky oil and gas projects that, without their backing, would struggle to find the financing and insurance required to proceed. Moreover, they’re sinking billions into these climate-polluting fossil fuel companies, embedding the sector deeper into the fabric of our economy.”

Brilliant article by @CathyCowanBecker

Insurance industry’s hypocrisy: Warning about climate change, backing fossil fuels
https://www.greenamerica.org/blog/insurance-hypocrisy-warning-climate-change-backing-fossil-fuels