2023-06-09 14:43:10 ET
The Senate Budget Committee launched a probe into how U.S. insurance giants evaluate climate-related risks, decide to invest in or underwrite fossil fuel projects that hinder global climate goals, and price policies that insure such projects, according to a release dated Friday.
Senator Sheldon Whitehouse (D-RI), chairman of the Senate Budget Committee, and Senators Ron Wyden (D-OR) and Bernie Sanders (D-VT) pressed American International Group ( NYSE: AIG ), Berkshire Hathaway ( NYSE: BRK.A ) ( NYSE: BRK.B ), Chubb ( NYSE: CB ), Travelers ( NYSE: TRV ) and other big names in the insurance space, to disclose the above factors.
The investigation comes after the Budget Committee held a series of hearings to assess the economic risks associated with climate change.
"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, which threaten lives, livelihoods, and the federal budget," Whitehouse said in a letter.
"That is why I am launching an investigation to obtain key information and internal documents showing how these companies weigh risks to the climate when considering their underwriting and investment decisions," he added . "This information is especially relevant as some of these companies begin to pull out of certain markets because they see the coming catastrophe climate risks -- despite continuing to provide services to the fossil fuel industry."
On Thursday, the Wall Street Journal reported that AIG ( AIG ) and Allstate ( ALL ) are steering clear of home-insurance sales in certain parts of the U.S. that have become increasingly vulnerable to climate change, a move that could discourage housing development in such areas.
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Budget Committee launches probe into insurers' climate risk assessment