Climate Insurance Doom Loop

Homeowners are paying more and more for less insurance coverage. Between 2021 and 2024, property insurance premiums rose 24 percent nationwide—twice as fast as inflation—while insurers increasingly cancelled policies and denied claims. In 2024, about 48 percent of claims filed with the 14 largest property insurers were closed without payment. (Zoom in on this map to see how the crisis affects your community.)

Insurers deflect blame as climate-related disasters like fires and hurricanes drive losses. Yet the same companies are fueling the crisis by investing billions of policyholder dollars into fossil fuel projects that worsen extreme weather. Meanwhile, property insurers posted $169 billion in profits in 2024 across their entire businesses—a 90 percent increase from 2023 and a 333 percent jump from 2022.

The Fossil-Free Insurers Act

The Fossil-Free Insurers Act is a model bill that state legislators can introduce that calls on insurers to stop profiting off pollution while leaving communities unprotected. The Act would:

  • Require major insurers to phase out investments in and insurance for fossil fuel projects by 2035, with interim targets.
  • Mandate annual reporting and certification of compliance to maintain the insurance company’s state license.
  • Impose penalties and licensing restrictions for companies that fail to comply.
  • Direct penalties and fees towards clean energy and climate resilience funds for disadvantaged communities.

Why It Matters

Insurers claim climate-driven extreme weather is forcing them to drive up premiums or exit communities, but they are still profiting from fossil fuel investments that make extreme weather worse and drive up costs for everyone.

This reform requires insurers to align their business practices with climate science—protecting consumers, not polluters.

How to Take Action

You can help introduce this bill in your state.

  1. Share the model bill with your state representative.
  2. Request a meeting with their staff to explain why it matters to homeowners or renters like you.
  3. Ask them to introduce it in the next legislative session.

The model bill can be customized for your state, but the goal is clear: Protect consumers, stop insurer-funded pollution, and break the cycle. If you’d like to talk about the model bill and its potential in your state, contact us at [email protected].