Climate-related losses are outweighing revenues generated from underwriting fossil fuel business at many of the world’s leading insurance firms, according to the latest annual scorecard from campaign group Insure Our Future. The report’s analysis of 28 top global property and casualty insurers found that their estimated share of climate-attributed losses (US$10.6 billion) came close to equalling the US$11.3 billion in direct premiums underwritten for oil, gas and coal clients in 2023. For more than half the companies – including Allianz, AXA, and Zurich – losses exceeded these premiums, which make up less than 2% of total premiums. The figures raise “serious questions” about why insurers are not using their influence on the fossil fuel sector to protect the other 98% of their business against climate risks, the group said. The report also found that climate change accounted for more than a third (US$600 billion) of global insured weather losses over the last two decades, with climate-attributed losses rising from 31% to 38% of total insured weather losses over the last decade on average. On an individual basis, Generali replaced Allianz at the top of the scorecard of fossil fuel restriction policies, after becoming the first and only insurer to mostly rule out oil and gas expansion across the value chain, including new methane LNG terminals. However, Insure Our Future said industry progress had stalled on effective climate action, with firms leaving communities worldwide exposed to “mounting risks without protection”. The group called on policymakers to mandate “robust scenario analysis to account for the full complexity” of climate-related events, and to require insurers to develop, implement and disclose 1.5°C-aligned transition plans.
