In 2019, Insurance Companies Poured At Least $536 Billion Into Fossil Fuel Investments
Insurance companies invested more than $536 billion in fossil fuel interests in 2019, even as they paid damages for climate-accelerated catastrophes, according to a report released yesterday by the California Department of Insurance. The report examined about 1,200 insurance companies, all of which operate in California, often in addition to other parts of the United States.
Large insurers use gains from investments to help pay losses. But California Insurance Commissioner Ricardo Lara argued that dollars invested in fossil fuel companies are a growing risk, given climate change.
“We need more climate-focused investments to solve our climate crisis, including from insurance companies that must do more to protect consumers and the environment,” Lara said in a statement. “This report is part of my continued comprehensive strategy to address insurance companies’ fossil fuel exposures and hold them accountable while letting consumers judge these companies’ progress on climate action for themselves.”
The report is the most exhaustive study of fossil fuel investments by insurance companies ever done by any U.S. state, Lara said. It used S&P Global’s Trucost Environmental data, which includes climate and financial data sets, along with additional publicly available data, according to an aide for Lara. The report looked at information from 2018 and 2019, the most recent years with data available, and found that insurance companies increased their fossil fuel investments from $477 billion in 2018 to $536 billion in 2019.
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https://www.eenews.net/articles/insurers-invested-536b-in-fossil-fuel-interests-analysis/
