This is the third in our series of articles on the power of personal finance as a vital tool to fight climate change.
Money (Photo – torange.biz).
It is important to consider insurance in the context of green personal finance.
By Katherine Markova
Insurance companies collect premiums at the start of your coverage period (typically, 12 months for property and casualty insurance products) and invest those premiums in various assets, including corporate equity and debt.
A recent report has revealed that the US insurance sector holds $500BN in fossil fuel-related assets. At the same time that they are playing their part in causing the climate crisis, many of these same companies are dropping coverage or increasing premiums in regions most impacted by it.
There isn’t a comprehensive resource providing a list of greener insurance companies and products. However, it is a safe bet that any insurance company that is a certified B Corporation (companies that have to take the health of the planet and wellbeing of local communities into account when making business decisions) will have little or no exposure to the fossil fuel sector. A quick search for US-based insurance companies that are B Corporations has produced this list of five organizations providing life and property insurance:
- Assurity Group, Inc
- Branch Insurance
- Coaction Specialty Insurance
- Lemonade Insurance
- Urban Jungle Insurance
Among them is Lemonade, a company which has previously pledged not to invest in fossil fuel companies.
For those of you who like to do your own research, this database warehouses filings by insurance companies on climate risk and resilience matters. Search for a company you are interested in and read about its investment policy as it pertains to oil and gas assets.
Katherine Markova is a climate consultant and is an Instructor for UCLA Extension’s Sustainability Certificate Program.
Leave a Reply