The climate crisis and insurance companies intersect at three main points.
Climate risks: the risks that insurance companies guard against will include the growing risks associated with extreme adverse weather events. More intense and more frequent floods, wildfires, storms, mud- and landslips will lead to increases in damage to lives and properties. In the short term insurance companies will bear the loss; in the longer term premiums will rise but not necessarily profits.
Underwriting fossil fuel projects: fossil fuel projects – drilling wells, building pipelines, opening mines – need insurance companies who will underwrite the risk of undertaking the project. Ironically these are the very projects that cause climate change and the consequential extreme weather damage for which the insurance companies have to pay out.
Of course insurance companies can be the hero of the day by not underwriting fossil fuel projects and so preventing them from going ahead.
Investing in climate positive or climate negative: to ensure they have sufficient funds to pay out for insurance claims, insurance companies invest the premiums they receive to generate a return. In the past many insurance companies have invested in the fossil fuel industry. This again can be an ironic choice with their fossil fuel investments adding to the climate crisis and thus the size and number of insurance claims being made.
Of course, insurance companies do not have to invest in fossil fuels; there are many other investment opportunities in the renewable energy industry, where profits can be made without damaging the environment.
From 26th February, across the globe, climate activities took part in the week long ‘Insure our Futures’ campaign. The campaign reached out to numerous insurance companies – and groups such as Lloyds of London – inviting them to be the superheroes we need by committing to ensure their company policies exclude the fossil fuel projects that are devastating the world. The campaign was highly creative with dance and song, music and marches and symbolic actions such as forming a human chain around Lloyds of London. Other activists peacefully occupied the offices of key insurance companies whilst passing on information to their staff about the risks of insuring destructive projects such as the East Africa Crude Oil Pipeline (EACOP).
I took part in one such occupation. Eight of us calmly walked into the foyer of 88 Leadenhall Street which houses the offices of Probitas 1492. We sat quietly on the floor such that we were visible to those coming in and out – but not blocking their passage. We remained there for five hours, praying, singing, reading poems, and hearing once again the speech given by Antonio Guterres, the UN Secretary General, in which he spoke of the urgency of tackling the climate crisis using the famous words that we must now act to do ‘everything, everywhere, all at once.’
Throughout our stay the receptionist and the security staff we polite and pleasant – afterwards we gave them a box of chocolates as a thank you. The police presence (a pair of officers) was also polite: our action was not a criminal offence.
Today, 4th March, Probitas 1492, has officially confirmed that they have not and will not insure neither EACOP nor the West Cumbrian Coalmine. For more details – https://christianclimateaction.org/2024/02/28/christians-occupy-probitas-1492-to-ask-them-not-to-insure-fossil-fuel-projects/
The Green Tau 