Amid climate change, environmental campaigns are urging the insurance industry to align its practices with global climate goals.
The “Insure Our Future” campaign highlights, through its seventh annual report, that despite warnings issued 50 years ago about the climate emergency, many insurance companies continue to support projects that contribute to the ongoing climate crisis.
Most insurers still back projects that boost oil and gas production, a stance incompatible with the global climate goal of limiting global warming to 1.5°C, as set by climate scientists. According to research by Insuramore, fossil fuel insurance generated approximately $21.25 billion for the industry in 2022.
Lloyd’s of London ranks first in terms of underwriting fossil fuel policies, with estimated premiums ranging between $1.6 billion and $2.2 billion annually.
Here are the top 10 insurers in the fossil fuel sector:
Top 10 Fossil Fuel Insurers in 2025
| Rank | Company | Country of HQ | Premium Range (millions) | Midpoint Premium (millions) |
|---|---|---|---|---|
| 1 | AEGIS | Bermuda | 1,550 – 1,850 | 1,700 |
| 2 | PICC | China | 1,250 – 1,650 | 1,450 |
| 3 | Sogaz | Russia | 800 – 1,100 | 950 |
| 4 | Chubb | USA | 550 – 850 | 700 |
| 5 | Allianz | Germany | 475 – 775 | 625 |
| 6 | AXA | France | 450 – 750 | 600 |
| 6 | Fairfax Financial | Canada | 450 – 750 | 600 |
| 6 | Zurich | Switzerland | 450 – 750 | 600 |
| 9 | W.R. Berkley | USA | 525 – 625 | 575 |
| 10 | AIG | USA | 425 – 675 | 550 |
Natural disasters such as floods, wildfires, hurricanes, and droughts have led to a significant increase in insurance payouts, averaging $110 billion annually since 2017. However, insurers are now refusing to insure properties in the most hazardous markets.
Munich Re, the first company to warn about climate risks back in 1973, predicted that rising temperatures would lead to significant environmental changes. Despite these warnings, fossil fuel consumption and CO2 emissions continue to rise, with thousands of new fossil fuel projects in development that threaten to undermine the global effort to keep warming below 1.5°C.
The Impact of Climate Change on Insurance
The Global Energy Monitor reports a large number of proposed and ongoing fossil fuel projects, including coal, oil, and gas extraction, coal power plants, LNG import terminals, and gas and oil pipelines.
Insurers are facing heightened financial risks due to climate change. Reinsurance capital decreased by 20-25% in 2022, resulting in a spike in premiums. Major insurers, including AIG Re, AXIS Capital, AXA XL, Everest Re, and SCOR, have reduced coverage or completely withdrawn from the property market.
In response to increasing climate disasters, primary insurers covering over two-fifths of California’s home insurance market have exited the market. Companies like State Farm, Allstate, Chubb, Tokio Marine, AIG, and Berkshire Hathaway’s AmGUARD have left, severely affecting homeowners’ vulnerability and property values.
Leading insurers that joined the Net Zero Insurance Alliance have also faced criticism for not meeting their commitments. Out of 31 members, 20 left the alliance under the threat of anti-trust action in the US. Only a handful have published transition plans and net-zero targets, failing to adopt targets aimed at reducing absolute insured emissions by 34%.
“The insurance industry first warned about climate risks in 1973, and now these risks are a harsh reality, especially for low-income nations and communities that have contributed the least to the climate crisis. Insurance companies are abandoning customers affected by climate risks, yet they continue to fuel the climate crisis by underwriting and investing in the expansion of fossil fuels,” said Peter Bosshard, global coordinator of Insure Our Future.
“If insurers took climate science seriously, they would fully align their underwriting and investment strategies with a credible 1.5°C pathway and end all support for the expansion of fossil fuel production. They would be holding fossil fuel companies accountable, making polluters pay for the increasing costs of climate disasters, and ensuring that insurance remains affordable for climate-impacted communities,” Bosshard added.
“A Symbol of Insurers’ Failure”
The 2023 Scorecard on Insurance, Fossil Fuels, and the Climate Emergency, a report compiled by 22 organizations from 12 countries, evaluates the climate policies of 30 major insurers. Notably, the top three positions in the report’s ranking table were left vacant, symbolizing the insurers’ inadequate response to the ongoing climate emergency.
