Insurance Journal: IPCC Climate Change Report

The UN Intercontinental Panel on Climate Change has issued a report on the ongoing risks of droughts, floods, wildfires and storms due to climate change. Corporations already prepare, and the insurance industry must worry both about property damage and coverage as well as an abrupt end to investments in the carbon economy as public opinion tends to shift quickly on such matters. “Institutional investors, such as insurers, could face transitional risks, where governments and citizens, fearing potential catastrophic impacts of climate change, respond aggressively to decarbonize the economy, and assets in fossil fuels become stranded investments as the sector plunges on the markets,” reports Don Jergler for Insurance Journal. Reducing reliance on coal and other fossil fuels could limit global warming increase to 1.5˚C. The California Insurance Commissioner organized a database of oil, gas, utilities and coal investments held by insurance companies and requires insurers with more than $100 million in annual premiums to disclose such investments. Insurers also hope for new technologies on carbon control, but conservation and a shift to alternative energies may be the easiest and least expensive approach. – YaleGlobal

Insurance Journal: IPCC Climate Change Report

Some in insurance industry unnerved by stark warnings from the IPCC on global warming and wonder if investments in fossil fuels, especially coal, are prudent
Don Jergler
Thursday, October 18, 2018

Mexico Beach after Hurricane Michael
Mexico Beach in Florida after Hurricane Michael

Read the article from Insurance Journal about climate change worries.

Read about the California Carbon Risk Initiative.

Also read “Campaign Calls on U.S. Insurers to Reject Fossil Fuels” by Don Jergler for Insurance Journal:

“The Insure Our Future campaign calls out the U.S. insurance industry as a major contributor to climate change because it is a major investor in fossil fuel companies, reporting that the 40 largest U.S. insurers hold over $450 billion in coal, oil, gas and electric utility stocks and bonds. The Property Casualty Insurers Association of America says people behind this campaign ignore that fact that insurers are obliged the make the safest, best investments with their money.”

Also read about the concerns over fossil fuels as stranded assets from the think tank adelphi.

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