WASHINGTON, D.C. — Farmers Insurance, a subsidiary of Zurich Insurance Group, announced in a statement today that the company began limiting new homeowners insurance policies in California on July 3. Shortly after Farmer’s revealed that it would limit new coverage, the American Property Casualty Insurance Association (APCIA) called for reform of California’s insurance regulatory framework to make it less consumer friendly.
In response, Carly Fabian, insurance policy advocate with Public Citizen’s Climate Program issued the following statement:
“Farmers’ decision is a prime example of the insurance industry’s hypocrisy on climate change, given its role in contributing to and profiting from the climate crisis. Not only has Farmers been a significant investor in fossil fuels, but its parent company, Zurich, remains a top insurer of oil and gas. By prioritizing fossil fuels over homeowners, the insurance companies who have scaled back coverage in California have been undermining their own markets in pursuit of short-term profits. Regulators must begin requiring insurers to mitigate their own risks by reducing these companies’ insured and financed emissions.
“As insurance companies scale back in California, it should not be lost that the APCIA is lining up demands for lawmakers to weaken strong consumer protections like Prop 103, a goal that has been on the industry’s wishlist for decades. As the industry exploits a crisis for further profits, regulators must develop transparent, public solutions to protect consumers.”
Originally published by Public Citizen.