Industry Issues | ERM & Emerging Risks

Climate Activist Group Petitions California DOI to Mandate Insurer Disclosures

Climate Change - News

Climate Activists Petition for Carriers in California to Reveal Fossil Fuel Insureds

On March 21, environmental, consumer and social justice organizations collectively delivered a formal petition to California Department of Insurance Commissioner Ricardo Lara seeking mandatory insurer disclosures of the fossil fuel projects they insure.

https://consumerwatchdog.org/sites/default/files/2019-03/FossilFuelPetition.pdf

The petition states: "To ensure the solvency of the insurance industry and protect consumers in California, we request that you immediately initiate a rulemaking proceeding and promulgate emergency regulations to require all insurance companies licensed to conduct business in California to fully disclose: (1) all their investments in fossil fuel-related entities, and (2) all the fossil fuel-related companies and projects that they underwrite or otherwise insure."

In contrast to the climate-related disclosures collected in nine (9) annual surveys conducted under former Insurance Commissioner Dave Jones, the petitioners seek to require mandatory disclosure of insurance companies' fossil fuel underwriting and to expand disclosure of insurance companies' fossil fuel-related investments to apply to all insurance companies regardless of size.

"Immediate, imminent, and quantifiable harm to consumers and insurers from the impact of climate change makes clear the urgent need for the California Insurance Commissioner to help insurers address fossil fuel-related climate risks to their investments and solvency." The signatories call upon Commissioner Lara to adopt emergency regulations to protect the health, safety and welfare of consumers, and the financial health and solvency of insurance companies. (Ins. Code § 12921.7; Gov. Code § 11346.1.)

The petition concludes seeking a response from the Commissioner within thirty days, as the petitioners submit is required by Government Code section 11340.7.

APCIA welcomes any member comment or question on this matter. Please email feedback to david.kodama@apci.org.