The United States is facing a nationwide, climate-related insurance crisis. Global insured losses from natural catastrophes in 2023 exceeded $100 billion for the fourth consecutive year.[1] These growing losses have translated into dramatic insurance cost increases. Premiums nationwide rose 34% between 2017 and 2023, with prices increasing 40% faster than inflation.[2] In 2023, 12% of homeowners lacked insurance, up from 5% four years earlier, as states like California and Florida become uninsurable due to climate-driven disasters.[3]

The Hartford has seen increases in its underwriting losses on personal lines, from a gain of $275 million in 2021 to a loss of $230 million in 2023.[4] Beginning February 2024, the Hartford ceased issuing new homeowners’ policies in California.[5] California homeowners could lose up to $32.1 billion in property value due to non-renewals planned by large insurers.[6]

Despite this growing insurance crisis, The Hartford continues to invest in and underwrite high greenhouse gas (GHG)-emitting sectors, exacerbating extreme weather and increasing systemic risk. The Hartford holds $1.364 billion in fossil fuel-related shares and bonds.[7]

The Hartford has set a net zero emissions reduction target for its investment and insurance activities. However, it has not made public how it plans to achieve these reductions. It has not set a baseline of emissions for its insurance activities, nor has it set short or medium-term reduction targets for its investment and insurance-related emissions. It is therefore impossible for investors to know if The Hartford is on track to meet its long-term climate goals, and whether its actions will decrease associated climate risks.

Setting interim emissions reduction targets is an integral pillar of net zero transition planning, as laid out by the Glasgow Financial Alliance for Net Zero (GFANZ). GFANZ recommends that financial institutions disclose net zero transition plans, including interim targets, to stakeholders and disclose progress against their plans with their climate disclosures at least annually.[8]

Hartford is falling behind its peers on the issue. At least 15 European insurers have begun to set short or medium-term emission reduction targets for their invested emissions.[9] 60% of insurers surveyed by ShareAction had released interim targets for their investments.[10] Five European insurers have also set interim targets for insurance-related emissions.[11]