Insurance Industry Taking A Close Look At Limiting Climate Change Exposure

The insurance industry is taking the threats from climate change increasingly seriously and as a part of its efforts to limit exposure, it is moving away from fossil fuels that pose the highest risk.

Twenty-three companies have adopted coverage limiting or cessation policies for the coal sector.

‘This was not an issue that was central in the insurance sector, even 7 years ago,’ explained Insurance Bureau of Canada national director of climate change, Robin Edger in a recent report. ‘But now it is moving at light speed.’

Since 2018, 23 companies in the global insurance industry have adopted new policies for restricting or eliminating their coverage of the coal sector. Moreover, nine insurers have done the same for the oilsands in Canada.

Other insurers are making moves to change their assets. It has essentially become commonplace for insurers to divest from fossil fuel investments and replace them in their investment portfolios with green energy.