The insurance industry needs to stop funding fossil fuels and lead on the transition to clean energy, says COP26 panel
Insurance is seen as a measure of protection against the worst-case scenarios, like fire, flooding, and severe business losses. However, the global insurance industry is increasingly being questioned for its contribution to the climate crisis due to its decades of underwriting and investing in fossil fuels companies.
While some insurers are selling off their coal, oil, and gas assets due to pressure from the divestment movement, others continue to support production and expansion of the industry through investment and acceptance of potential risk for a fee, known as underwriting.
At this year’s United Nations Climate Change Conference in Glasgow (also known as COP26), a panel will release the fifth annual Fossil Fuel Insurance Scorecard, which will highlight which global insurers are helping the world transition to a low-carbon economy, and who is not.