San Diego Union-Tribune (Sunday)
STATE HIGHLIGHTS INSURANCE INDUSTRY FOSSIL FUEL INVESTMENTS
A new report from California’s insurance commissioner shows how much insurance companies are investing in fossil fuels in a continual effort to address the insurance industry’s role in combating climate change.
“There’s no good number of fossil fuel investments,” said California Insurance Commissioner Ricardo Lara. “We need to transition companies as quickly as possible, and also give them a comprehensive strategy to get them to increase their green investments.”
Insurance companies invest premiums paid by customers to help pay claims. According to the report, which covered insurance companies operating in California subject to regulation, more than $536 billion were invested in fossil fuels in 2019, or about 9 percent of managed assets.
The report also tabulates how much companies have invested in green bonds, which finance projects related to energy efficiency, pollution prevention, sustainable agriculture, clean transportation, sustainable water and more. In 2019, approximately $11.4 billion was invested in green bonds — double the $5.03 billion invested in 2018.
“Fossil fuel investments are contributing to the very emissions that are intensifying wildfires and floods,” Lara said. The goal is to “reduce fossil fuel investments and increase green investments.”
Lara’s office has previously released a Climate Smart Insurance Products database. The office hopes to encourage not just green investing but also insurance coverage for more green projects.
According to a database on the California Department of Insurance website, approximately half of the insurance companies in the report have 5 percent or less of their managed assets invested in fossil fuels. The company with the highest percentage of fossil fuel assets is CSI Life Insurance, part of Berkshire Hathaway, with 75 percent.
Teachers Insurance and Annuity Assn. of America has nearly $25 billion in fossil fuel investments,