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April 28, 2022

US lawmakers urge top insurers to stop covering fossil fuels

A group of 16 lawmakers in the US have asked the country’s major insurance firms to stop underwriting fossil fuel projects, a Bloomberg report said. 

The lawmakers sent letters to companies including American Insurance Group (AIG), Chubb and Berkshire Hathaway Specialty Insurance. 

“The insurance industry profits from the expansion of fossil fuels while ripping the rug out from under the communities most affected by climate change,” the letters read.

Among those who issued the letters include New York Representatives Mondaire Jones and Alexandria Ocasio-Cortez as well as California’s Jared Huffman and Adam B. Schiff. 

According to the International Energy Agency, all new developments in fossil fuel projects should be stopped to prevent the disastrous impact of climate change. 

The letters have also called out the insurers for reducing services and increasing the prices for covering threats emanating from climate change such as wildfire. 

The news comes as insurance firms across the globe try to reduce their carbon footprint and achieve net-zero targets. 

Last month, AIG committed to achieving net-zero greenhouse gas (GHG) emissions across its global underwriting and investment portfolios by 2050.

Other insurance firms across the globe are taking similar steps to achieve their net-zero targets.

In July 2021, eight insurance and reinsurance firms launched Net-Zero Insurance Alliance (NZIA).

Most recently, MAPFRE joined NZIA, which aims to achieve net-zero targets for the participating members’ insurance and reinsurance underwriting portfolios by 2050.

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