Who Should Really Pay for Climate Change?

Insurance companies in California are raising rates and dropping customers because of climate-related disasters. State Farm, the state's largest insurer, has already increased rates by an average of 17% for homeowners, 15% for renters and condo owners, and 38% for apartment owners. They are also seeking another 11% increase for all residential properties. Other insurance companies are following suit, asking for rate hikes or even leaving the state altogether. But who is really to blame for these climate disasters? Insurance companies should be looking at the oil and gas industry, which has known for decades that fossil fuels are causing climate change. Instead of passing the costs onto homeowners, insurers should be suing Big Oil and Gas for the damage they've caused. A recent study published in Nature found that 111 fossil fuel companies caused $28 trillion in climate damage from 1991 to 2020. Chevron alone caused $1. 98 trillion in economic losses, while ExxonMobil and BP caused $1. 91 trillion and $1. 45 trillion, respectively. Meanwhile, the oil and gas industry has been raking in huge profits, over $1 trillion in the past decade alone. Insurance companies have the power to hold these companies accountable. They should be tapping into those record profits to offset climate costs. Climate change has led to insurance losses totaling about $600 billion over the last two decades, and climate-related disasters now account for nearly 40% of the industry's total losses. But why haven't insurers tried to hold oil and gas companies accountable? It's likely because insurance companies are heavily invested in fossil fuels. But there is an easy solution to that conflict of interest: Insurers should divest from fossil fuels. California property owners and taxpayers can't afford to shoulder the burden alone. It's time for insurance companies to step up and hold Big Oil and Gas accountable for the damage they've caused.