The insurance industry's shared responsibility for the climate crisis - A financial expert takes stock

The insurance industry's shared responsibility for the climate crisis - A financial expert takes stock

According to a report by www.woz.ch The CEOs of major insurance companies receive a cake covered in oil for the birthday of their industry association, the Geneva Association. The insurance managers are meeting for a two-day anniversary event, during which protecting the planet and achieving a climate-neutral economy will also be discussed.

Insurance companies have spent a lot of money to stay current with current scientific knowledge and are aware of the state of the planet. Nevertheless, they have expanded the business of insuring climate-damaging fossil fuel companies over decades. They bear a large share of the blame for the current climate crisis, as they have the opportunity to insure the construction and operation of climate-damaging systems.

Insurance companies have a social responsibility that they have not yet adequately fulfilled. For example, the largest Swiss insurer, Zurich, is number six in the world when it comes to insuring oil and gas production facilities. In order to get out of the fossil fuel madness, pressure should be exerted by environmental activists and customers.

These practices can have far-reaching impacts on the market, the consumer and the industry. A rethink by insurance companies could lead to increased investments in sustainable projects and reduced incentives for climate-damaging activities. This could also improve insurance premiums and conditions for environmentally friendly companies, while climate-damaging activities become more expensive.

It is therefore crucial that insurance companies assume their social responsibility and take measures to actively combat the climate crisis.