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Shopper Watchdog Calls on Federal Insurance coverage Workplace to Expose Monetary, Local weather Dangers of Insurance coverage Trade’s Fossil Gas Underwriting After California Fails to Act

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THE ANGELS, Nov. 16, 2021 /PRNewswire/ — Shopper Watchdog joined 39 different public curiosity organizations in feedback calling on the Federal Insurance coverage Workplace to highlight how the insurance coverage business contributes to local weather change by insuring fossil gasoline tasks. A 2019 petition on this subject to California Insurance coverage Commissioner Ricardo Lara was denied.

The teams additionally known as on FIO to research how insurers’ response to local weather threat — elevating charges or refusing to cowl complete neighborhoods — falls hardest on low-income communities, communities of coloration and different weak populations.

Learn the teams’ feedback:

Shopper Watchdog first sought motion on this subject practically three years in the past. In March 2019 the group petitioned California Insurance coverage Commissioner Ricardo Lara, together with greater than 60 environmental, client and social justice organizations, to difficulty first-in-the-nation laws to require insurance coverage corporations to reveal the fossil gasoline tasks they insure.

“The Biden Administration should act when even California Insurance coverage Commissioner Ricardo Lara, who has positioned himself as a local weather champion, has refused to pressure insurance coverage corporations to come back clear on their contributions to local weather change,” mentioned Shopper Watchdog govt director Carmen Balber.

“Within the two and a half years since Commissioner Lara denied the petition, the California Division of Insurance coverage has held workshops, convened working teams, issued white papers, proposed laws and produced numerous press releases on local weather change. But it has by no means as soon as addressed how insurance coverage corporations contribute to local weather change by insuring the fossil gasoline business,” wrote Shopper Watchdog in feedback submitted to the Federal Insurance coverage Workplace yesterday.

“Transparency is the primary and most necessary weapon in a monetary regulator’s arsenal to assist defend the monetary solvency of insurers and the pursuits of shoppers. States can not meaningfully assess the local weather threat borne by insurers with out disclosure of those corporations’ fossil gasoline underwriting. But the concrete monetary risk of insurance coverage corporations’ underwriting local weather change has been swept underneath the rug in California and throughout the nation.

“Nationwide management is required to spotlight the crucial function insurers have in inflicting their very own disaster losses by contributing to local weather change as a result of the states have didn’t act. The Federal Insurance coverage Workplace should present that nationwide highlight,” the letter ends.

Learn Shopper Watchdog’s letter to the Federal Insurance coverage Workplace, the petition to Commissioner Lara, and his rejection: https://consumerwatchdog.org/websites/default/information/2021-11/ConsumerWatchdogSubmission11-15-21.pdf

Local weather change-exacerbated catastrophes are costing insurance coverage corporations billions. President Biden charged FIO with investigating local weather threat to monetary corporations.

SOURCE Shopper Watchdog

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