An activist group has written an open letter to the CEOs of 30 major insurance companies, demanding a shift in their insurance strategies in order to ramp up their net zero efforts.
In its letter, the Insure Our Future network set out a number of demands made to the chief executives of AIG, Allianz, AXA, Chubb, Generali, Liberty Mutual, Lloyd’s of London, Munich Re, SCOR, Sinosure, SOMPO, Tokio Marine and Zurich, among others.
The letter outlines insurers' "critical role in the climate crisis and concrete actions they must take if they are serious about supporting the global goal of limiting climate change to 1.5°C.," according to the document.
The group demands that insurers "immediately stop" offering any insurance services which support the expansion of coal, oil and gas production and within two years phase out all insurance services for fossil fuel companies which are not aligned with a credible 1.5ºC pathway.
"Immediately divest all assets, including assets managed for third parties, from coal, oil, and gas companies that are not aligned with a credible 1.5ºC pathway," according to the letter.
The group does acknowledge that "in the last few years many insurers have adopted policies which have helped accelerate the shift away from coal and more recently some leading insurers have started to adopt policies to exclude new oil and gas projects. A welcome trend that is set to continue."
However, Insure our Future did write that, overall, the industry has "failed to align its business with the scientific consensus on what is required to limit global warming to 1.5°C."
The group added that some insurers argue that they are engaging their energy sector customers in a dialogue about the net zero transition and that this can encourage them to transition faster then excluding them from their insurance and investment portfolios.
"But major oil and gas producers show no signs of adopting credible net zero pathways and some have recently even walked back the weak commitments they have made in the past, despite their recent obscene record profits," according to the letter that was sent out on 28 March.
