Here’s a brief explanation of why Naturesave, a green insurance specialist, has decided to embark upon a campaign for insurance divestment.
Why Divestment: Divestment has an important part to play in climate change resilience. It is both an economic and ethical strategy to remove, or amend, the social license that insurers need to operate. In particular, the economic arguments for divestment are gaining traction once fossil fuels are considered potential liabilities, also now recognised as“stranded assets”.
Why Insurance: The insurance industry is in the business of managing risk and is expected to pay out for losses relating to storms and floods. These risks are being directly exacerbated by climate change and are projected to increase as the climate warms. It may therefore come as a surprise to learn that the insurance industry itself is one of the worlds largest investors in fossil fuels. The top US insurers alone, have over half a trillion dollars invested in coal, oil and gas.
Why Naturesave: As a market leader in green and ethical insurance for 25 years, our ethos is to act as an agent for change, striving to create a more sustainable future. In seeking to use the insurance industry as a vehicle for sustainable development, we have sought out insurers to act as carriers for our policies, that can demonstrate their commitment to fighting climate change. The Campaign For Insurance Industry Divestment represents our effort to urgently change the investment strategy of the insurance industry.