Democrats on Senate Budget Committee Open Investigation Into Major Insurers

Democrats on the U.S. Senate Budget Committee launched an investigation on Friday into major insurers’ “support” of new fossil fuel projects, on the heels of an industry retreat from areas prone to climate risks.

American International Group, Travelers Companies, Chubb, Berkshire Hathaway, Liberty Mutual, Starr and State Farm are under the committee’s scanner.

The companies were pressed for disclosures on how they evaluate climate-related risks and price insurance policies on fossil fuel projects.

“By underwriting and investing in new and expanded fossil fuel projects, U.S. insurers are helping Big Oil bring us closer to the worst runaway climate scenarios,” the Committee’s chairman Senator Sheldon Whitehouse said.

Some insurers have started to dial back coverage in disaster-prone areas, citing increasing costs of claims.

Late last month, State Farm said it would stop selling new insurance policies to homeowners in wildfire-prone California.

The companies did not immediately respond to Reuters’ requests for comment.

The insurers were also asked if they have clear policies to obtain consent from indigenous communities before underwriting or investing in projects that disproportionately impact such groups.

Besides Senator Whitehouse, Senators Ron Wyden and Bernie Sanders are part of the group that launched the investigation.

The companies were asked to provide information by June 16 and supporting documents by June 23.

Topics Carriers Politics