Insurance, climate, and coal

In addition to providing liability policies, insurers are some of the largest investors in coal worldwide--but that's changing. Some 35 insurance companies, mostly based in Europe, have elected to stop underwriting coal and related industries. US insurers, however, are not following suit. In a joint letter to leading US insurers in March, a group of US Senators led by Senator Sheldon Whitehouse (D-RI), asked how their fossil-fuel underwriting and investment policies address climate-change risks. "The responses we received were general and did not specifically answer our questions", Whitehouse said. Also in March, Federal Reserve Board (FRB) Governor Lael Brainard announced formation of the FRB Supervision Climate Committee to help assess financial risks from climate change.