Whereas: The Intergovernmental Panel on Climate Change advises that greenhouse gas (GHG) emissions must be
halved by 2030 and reach net zero by 2050 to avoid the worst consequences of climate change. Each 1°C
temperature rise costs global GDP 12% and further increases severe physical, transition, and systemic risks for
companies and investors.[1]
The insurance industry faces heightened risks as climate change increases insured losses and reinsurance prices
while decreasing insurable assets.[2] 2023 had the most billion-dollar climate disasters in one year,[3] and insurance
companies can bear over a quarter of disaster costs.[4] Global insured losses from natural disasters reached $118
billion in 2023, well above 21st century averages, with 67% of insured losses occurring in the U.S.[5]
Markel is exposed to climate risk as a long-term investor and underwriter of fossil fuel projects poised to intensify
climate change. In its 10-K, Markel acknowledges climate change “may result in insured losses that exceed our
expectations, make it more difficult or expensive for us to obtain reinsurance at desired levels, or increase physical
risks to... our operations.” Regarding its casualty risk exposure, Markel’s website states, “Now is the time for the
industry to wake up and start creating tools to prepare for potential systemic and clash events associated with climate
change.”[6]
Nevertheless, Markel neither discloses GHG emissions data nor publishes a sustainability report. Thus, Markel fails
to align with its public statements, and investors are left uncertain about the extent to which Markel is exposed to the
risks outlined in its 10-K and how, if at all, its business considers climate risks. Further, the company has not taken
any action in response to a 2024 shareholder proposal requesting GHG emissions disclosures that received a 37.9%
vote.
Peers including Travelers[7] and AIG[8] have begun disclosing emissions financed emissions in their sustainability
reports, among others. Allianz,[9] Achmea,[10] NN Group,[11] and Swiss Re[12] also disclose insurance-associated
emissions, including steps reduce them. Forthcoming regulations from the European Union and California require
Markel to disclose GHG emissions and climate mitigation strategies.