Wildfires in California are prompting insurers to raise homeowner premiums and drop policyholders, which they attribute to climate change. Despite this, insurers invest billions in fossil fuels, the primary driver of global warming. Lawmakers and advocates urge them to divest to support renewable energy, with former insurance commissioner Dave Jones criticizing these investments as contradictory and exacerbating wildfire risks. Insurers argue divestment would raise rates and undermine financial stability. Some pressure is causing firms like State Farm and Farmers to reduce fossil fuel holdings, but calls for stronger regulations and transparency persist. Experts suggest modernizing regulations to encourage coverage in high-risk areas might be more effective than outright divestment.
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