Watch the Freeport community voice their demands at 11am CT on June 8: HERE
June 8, 2023 — As insurers abandon communities facing rising climate threats from the Gulf Coast to California, fears of an uninsurability crisis in the US are growing. However, many of the same companies are making these risks worse by continuing to insure fossil fuel expansion, like methane gas export terminals— and then raising rates or withdrawing from communities.
In response, more than 140 organizations, representing frontline communities and allies, sent an open letter to the world’s largest insurance corporations, like Liberty Mutual, Chubb, AIG, demanding they stop insuring methane gas export terminals and meet with the community members affected by these projects. More than 20 liquified “natural” gas (LNG) facilities are proposed to be built along the Gulf Coast, located in communities already overburdened by the fossil fuel industry.
"Explosive gas export facilities are violating my community's right to Free, Prior and Informed Consent. Gas expansion in the Gulf and around the world threaten sacred sites, land, air, water and climate."
One of these communities, Freeport, Texas, is still shaken from an explosion and fireball at the gas export terminal last summer. The facility has a long history of mismanagement; the explosion was the fourth incident at the facility in the last three years. By continuing to insure Freeport LNG, insurance companies across the world such as AIG and Allianz are enabling Freeport LNG’s disregard for the community’s concerns.
"I live in Texas, three miles away from a major gas export, Freeport LNG. There was an explosion and fire at Freeport LNG a year ago today -- the resulting fire was an explosion that was 450 feet high. This explosion rocked our homes, spewed toxic chemicals, and sounded like thunder. Every day we live in fear of further explosions, air pollution, and the impacts of these facilities on our health. Insurers, drop methane gas- these projects are not worth the risks."
The letter explains why insurers should stop providing coverage for these polluting facilities. Gas export terminals pose a material risk for insurance agencies— as well as a danger to the surrounding community. Not only can they cause catastrophic damage, but gas export facilities also pollute the environment, which contributes to worsened health outcomes for local residents. The pollution exacerbates the climate crisis and fuels the frequency and intensity of natural disasters.
“It’s time for insurance companies to stop insuring LNG terminals, which are not only a major contributor to climate change, but also pose a significant risk to surrounding communities. These facilities have a history of accidents and explosions, and the potential for catastrophic incidents is too great to continue insuring them. Not only that, but the high insurance prices are disproportionately affecting low-income families who live near these terminals, as they are often unable to afford the high premiums. It's time for insurance companies to prioritize the safety and well-being of communities over profits and take a stand against these dangerous facilities.”
"Insurance companies essentially act as parents giving permission to Big Oil to pump the chemicals responsible for the climate crisis out of the ground. Freeport LNG is one example of the immense harm the fossil fuel industry is doing to the land, communities, and our planet—and U.S. insurers are complicit in that harm."
