High insurance coverage firms suffered $10.6 billion of climate-attributed losses this 12 months, simply shy of the $11.3 billion of direct premiums they underwrote for industrial fossil-fuel purchasers in 2023, in response to Insure Our Future.
Of the 28 insurers reviewed, greater than half have been hit by climate-attributed losses that exceeded the coal, oil and gasoline premiums they earned, Insure Our Future mentioned Tuesday in a press release. On common, fossil-fuel premiums account for lower than 2% of whole premiums, elevating questions on why insurers aren’t utilizing their immense affect to guard the opposite 98% of their enterprise from spiraling local weather dangers.
The report mentioned local weather change accounted for about $600 billion, or greater than 33%, of worldwide insured climate losses over the previous 20 years. Local weather-attributed losses rose to a mean 38% of whole insured climate losses over the previous decade, up from 31%.
The insurance coverage trade has itself warned concerning the rising toll. Insured losses from pure catastrophes are on observe to exceed $135 billion in 2024, Swiss Re said in a recent statement. It marks the fifth consecutive 12 months that insured losses from pure disasters will break the $100 billion mark.
Insure our Future mentioned the local weather price ticket ought to persuade the companies to cease underwriting fossil-fuel enlargement and align their companies with 1.5C transition pathways.
“Insurers are strolling away from communities to guard shareholder returns from losses, sparking the disaster of insurance coverage affordability and entry,” the report mentioned.
{Photograph}: Cooling towers at energy plant; Picture credit score: Krisztian Bocsi/Bloomberg
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