On Earth Day, Mary Creasman headed to the California Capitol, focused on a vital issue: insurance. As the leader of California Environmental Voters, she was there to support Senate Bill 982, also known as the Affordable Insurance and Recovery Act. This bill aims to tackle the rising insurance costs spawned by climate change by allowing California’s attorney general to sue fossil fuel companies for climate-related damages.
The situation is pressing. Many insurance companies have drastically reduced their presence in California or have raised premiums significantly due to increasing wildfires and other climate events. This shift is leaving residents struggling to fund basic home insurance, making recovery from disasters more difficult.
Creasman explained that funds from lawsuits against fossil fuel companies would help the California FAIR Plan, an insurance program meant for those who can’t secure regular policies. This financial boost could help lower rates for residents after disasters and also support grants for communities to strengthen homes against severe weather.
Recent surveys show that 66% of Californians believe big corporations should help with insurance costs related to climate issues. However, industry groups argue that the bill may harm the fuel supply chain and lead to higher costs for consumers, labeling it as too broad.
Senator Scott Wiener, who introduced the bill, highlighted how climate change has dramatically driven up insurance costs. He noted, “Insurance premiums have gone through the roof,” leaving many unable to afford coverage.
The FAIR Plan, currently insuring around $700 billion in property, experienced a staggering 52% increase in insured property in just one year. This increase reflects the growing challenge of obtaining affordable insurance in high-risk areas post-disasters like the Camp Fire in 2018.
Ben Collier, an insurance expert from the University of Wisconsin-Madison, stated that the challenges surrounding insurance affordability have intensified over the past decade. He pointed out that insurance premiums have risen by an average of 28% since 2017, creating a significant hurdle, especially in disaster-prone regions.
As climate change continues to devastate communities through wildfires and floods, the discussion about who will bear the costs is essential. Creasman stressed, “We are on the front lines of what the world will be experiencing.” The FAIR Plan and proposals like SB 982 represent a crucial step toward addressing the complex relationship between climate change and insurance.
For those interested in further details, you can explore similar legislation in Hawaii and New York here and here.
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