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,[2] with prices increasing 40% faster than inflation.[3] In 2023, 12% of homeowners had no insurance, up from 5% four years earlier, as states like California and Florida become uninsurable due to climate-driven disasters.[4]

Allstate is one of California’s seven largest homeowner insurers and recently decided to limit new policies in the state.[5] Analysis finds that California homeowners could lose up to $32.1 billion in property value because of non-renewals planned by large insurers.[6] Allstate will also raise its California homeowner’s insurance premiums by an average of 34% this year.[7]

The insurance industry's response to increase premiums and exclude clients from coverage creates an insurance protection gap that increases climate risks to the economy and society at large.[8] Meanwhile, Allstate is actively amplifying climate risks by continuing to invest in and underwrite high greenhouse gas-emitting activities. Allstate is reported to have $4.35 billion invested in fossil fuels.[9]

Allstate does not disclose the emissions from its investments or its insurance activities. Thus, shareholders do not know the magnitude and extent of Allstate’s climate exposure and how it can be reduced in alignment with global 1.5°C goals. Standards and methodologies exist to quantify and report such emissions. The Partnership for Carbon Accounting Financials released its methodology for measuring insurance-associated emissions two years ago and for financed emissions five years ago.[10]

AIG,[11] The Hartford, [12] and eleven European insurers[13] have set net zero by 2050 targets for their investment and insurance portfolios. Travelers,[14] AIG, and The Hartford, alongside fifteen European insurers,[15] have also begun disclosing their financed emissions, and the number of insurers disclosing their insurance-related emissions has increased.[16]