Insurance companies are financing oil and gas-even as climate change is pummeling their bottom line

The recent wildfires in Los Angeles have illuminated the pressing issues surrounding climate risk and insurance. Major insurers like State Farm have ceased new policies in California, citing escalating wildfire damage as unsustainable. This ongoing situation raises vital questions about how insurance can adapt as homes become increasingly vulnerable to such risks. Furthermore, the paradox deepens as these insurers simultaneously invest heavily in fossil fuels, the leading contributors to climate change, despite acknowledging their risks. The industry's future hinges on reconciling these conflicting interests amidst a climate crisis.

In 1973, Munich Re warned of the growing risk of climate change, stating the insurance industry's first acknowledgment and its relevance to future climate risks.

Insurers are straddling a paradox: while acknowledging the risks of climate change, they continue to finance fossil fuels that contribute to the crisis.

Read at Fast Company