Thanks to Hannah LaClaire for pointing out the rising cost of homeowners insurance in Maine. This issue is not unique, as Massachusetts is also facing similarly significant increases.
One key point that is often overlooked is the insurance industry’s heavy investment in fossil fuels, the sector that is driving the need for higher insurance rates. As of the end of 2021, major insurance companies had $582 billion invested in fossil fuel companies, including a staggeringly large investment in the worst of them all: coal.
What does this mean? Are insurance companies investing so that they can raise prices in the future? This scenario is similar to how pharmaceutical companies and governments invest in tobacco and fast food to maintain markets for cancer, heart attack and weight loss drugs.
It is time for the insurance industry to consider the long-term impacts on consumers and the environment. Continuing to fund fossil fuels perpetuates a vicious cycle of climate-related disasters and rising premiums. Let’s demand greater transparency and accountability for how premiums are spent and an end to fossil fuel investments. I urge readers to contact the Maine Department of Insurance and demand that insurance companies doing business in Maine stop underwriting fossil fuels. Massachusetts residents should do the same in their state.
George Gaynes
Boxford, Massachusetts
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