WASHINGTON, DC – OCTOBER 9, 2024 – Green America launched a first-of-its-kind searchable directory to connect consumers with insurance companies that do not underwrite fossil fuel extraction projects or invest heavily in the fossil fuel industry. With options in all 50 states, the District of Columbia and Puerto Rico, the Climate Smart Insurance Directory lists local and regional home and auto insurance providers that offer competitive pricing and opportunities for policy-bundling, but without contributing to the climate crisis that is raising rates and limiting coverage options.The Directory provides consumers with climate smart insurers that:

• Offer home, renters and auto insurance (with very few exceptions), so consumers can save by bundling.
• Do not insure fossil fuel projects (per publicly available information).
• Have no indication of direct investments in the fossil fuel industry (Grade A), have investments under $200 million (Grade B), or investments under $500 million (Grade C), as listed in the Investing in Climate Chaos database by Urgewald, a German environmental and human rights NGO.
• Have a rating of A- or above for financial stability from AM Best.

Most states have at least four climate smart insurers listed that consumers can compare. Many of the companies are regional insurers or mutuals that do not spend large amounts of money on advertising. The announcement comes as the online real-estate marketplace Zillow rolls out new climate risk data so home shoppers can view flood, wildfire, wind, heat and air quality risks, for considering specific insurance needs and costs in risk-prone areas.   

Bill McKibben, founder of Third Act and 350.org, said: "No one really enjoys buying insurance—but this new tool helps make it both easy and constructive. This is the industry that should really understand risk; let’s support the companies that are using their knowledge to help not hurt."

Cathy Becker, Responsible Finance Campaign Director at Green America, said: “As the U.S. continues to see a record-shattering onslaught of extreme weather disasters fueled by climate change, insurance companies are seeing the most immediate impact through increased claims. So the fact that the very largest insurance companies are also investing billions of dollars in fossil fuels is a puzzling example of an industry directly funding its own downfall. Consumers are taking note, and they’re taking their business elsewhere.”

The insurance industry stands on the immediate front lines of the climate crisis. Every time a climate-related fire, flood, or storm damages or destroys property, policyholders expect their insurance policy to help foot the bill. But as natural disasters become more common, major insurance companies have begun to cancel or restrict coverage in climate-vulnerable states like Florida, California, Louisiana, North Carolina, Oregon, Colorado, Arizona and others. Hurricane Helene is just the latest multibillion-dollar superstorm to test the already-battered private insurance industry.

Despite increasing climate risks, the nation’s major insurance companies continue to support the chief cause of the climate crisis: the burning of fossil fuels. By insuring risky fossil fuel projects and investing billions of dollars in fossil fuel companies, major insurance companies are financially entangled with an industry whose interests conflict with the interests of its own customers.

Below are the U.S. insurance companies with the most total fossil fuel investments:

Michael Richardson, co-founder of Rivers & Mountains GreenFaith, which co-sponsored the project, said: “The scientific and moral imperative is clear: climate scientists have issued a clarion call to immediately stop all new fossil fuel projects if we are to avert critical tipping points in the climate system.  So, we must ask why the insurance industry continues to insure and fund new projects. At long last consumers have the Climate Smart Insurance Directory to connect them with insurance companies that are contributing the least possible into the money pipeline leading to climate chaos. This tool is one more way to mobilize people to take environmental action by making something we all have to do just a little easier – shopping for insurance.”

In 2023, the United States experienced a record number of weather- and climate-related disasters, causing $95 billion in damages. Meanwhile, average property insurance premiums increased 21% nationwide, even in places without heightened risk. Some states were hit harder than others. Homeowners insurance premiums increased the most in Florida (35%), Idaho (31%), Colorado (30%), South Dakota (28%), Louisiana (27%), Texas (27%) and Oklahoma (27%).

According to a recent report by the Consumer Federation of America (CFA), 7.4% of all homeowners in the country are currently uninsured, resulting in $1.6 trillion in unprotected market value, with many forced to go without insurance because they can’t afford rising premiums. Known as “going bare,” CFA warned that the problem of uninsured homes will worsen without significant investments in climate change adaptation and stronger oversight of the insurance industry.

Fourteen organizations have endorsed the Climate Smart Insurance Directory, including: Third Act, GreenFaith, American Sustainable Business Network, Stand.earth, Rainforest Action Network, Oil and Gas Action Network, Intentional Endowments Network, BankFWD, Center for International Environmental Law, Climate First!, Rivers & Mountains GreenFaith, Environmental Advocates NY, 350 Conejo San Fernando Valley, and Divest Washington.

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ABOUT

Green America is the nation’s leading green economy organization. Founded in 1982, Green America provides the economic strategies, organizing power and practical tools for businesses, investors, and consumers to solve today’s social and environmental problems. http://www.GreenAmerica.org 

Third Act is a growing community of Americans aged 60 and older determined to change the world for the better. Third Act harnesses an unparalleled generational power to protect our climate and safeguard our democracy. Using our life experiences, skills, and resources, we unite to tackle the unfinished work of our lifetimes and ensure a safe and stable planet for generations to come. https://thirdact.org

Rivers & Mountains GreenFaith, based in the Hudson Valley of New York, acts in coalition with Third Act and GreenFaith to mobilize climate and environmental action to end the era of fossil fuels and transition to a socially just and environmentally sustainable society. It participates in national, regional and local coalitions in forums, rallies, demonstrations and other actions directed at financial institutions to stop funding climate chaos. https://www.rivers-mountains-greenfaith.org

MEDIA CONTACT: Max Karlin for Green America, (703) 276-3255, or mkarlin@hastingsgroupmedia.com.