Citing Antitrust Concerns, AGs Caution Insurers on Pushing Climate Agenda

In a collective effort, more than two dozen Republican attorneys general issued a warning to insurance companies, cautioning against pushing customers to rapidly reduce emissions and promote an "activist climate agenda." The attorneys general argue that such efforts may potentially violate antitrust laws.

Led by Sean Reyes of Utah and Jeff Landry of Louisiana, along with 23 other Republican AGs, the warning was delivered in a letter sent to over a dozen insurance companies on Tuesday. The letter specifically called out the companies’ involvement in advancing environmental, social, and governance (ESG) priorities.

The recipients of the letter are insurance companies that have agreements with the Net-Zero Insurance Alliance (NZIA) and Net-Zero Asset Owner Alliance (NZAOA). The Republican AGs contend that these agreements could potentially breach both state and federal antitrust laws. Two insurance companies have already terminated their partnerships with NZAOA and NZIA, citing antitrust concerns.

According to antitrust laws, agreements to boycott disfavored sectors, such as those not meeting specific carbon emissions standards, could be deemed illegal. Similarly, collective agreements to fix prices or restrict production are also prohibited. The AGs argue that the actions of NZIA members, who possess significant market power, pose a threat of substantially raising consumer prices.

The alliances in question have set climate targets that their members are obliged to meet. These targets include pressuring clients involved in environmentally dirty industries to progressively decarbonize their business practices and increasing the proportion of business dedicated to insuring climate solutions, such as mitigation or adaptation activities.

The letter bears the signatures of attorneys general from Utah, Louisiana, Alabama, Alaska, Arkansas, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Mississippi, Missouri, Montana, New Hampshire, Ohio, Oklahoma, South Carolina, South Dakota, Texas, Virginia, West Virginia, and Wyoming.