Leading insurers globally are lagging in addressing climate, biodiversity and social risks despite growing threats from global warming, according to a new report by responsible investment NGO ShareAction, supported by WWF. The fourth edition of the Insuring Disaster benchmark assessed 40 of the world's largest property and casualty insurers and found that most received poor grades for their climate-related policies. Allianz and Achmea were the only insurers to receive a B rating.
The report found that many insurers continue to underwrite and invest in initiatives and activities that exacerbate climate change and biodiversity loss, despite climate-related disasters becoming more frequent and costly. Between 2015 and 2024, natural disasters caused around $280bn in direct economic losses each year, with less than half of those losses covered by insurance. According to ShareAction, the industry’s progress on new climate commitments has also slowed since the previous benchmark was published in 2024.
“Insurance exists to help people recover from disasters, yet this report shows many insurers are just adding fuel to the fire,” said ShareAction Director of Investor Sector Standards and Policy Louise Marfany.
Ms Marfany added that insurers are worsening climate risks by supporting fossil fuel expansion through their underwriting and investment decisions, contributing to more frequent wildfires, hurricanes and floods while making insurance increasingly unaffordable or unavailable in some regions.
The report also highlighted significant gaps in insurers’ policies, with 73% having no underwriting restrictions on upstream oil and gas expansion and 33% having none on coal. More than 90% of insurers involved in treaty reinsurance also lacked underwriting restrictions, while biodiversity-related underwriting restrictions remained uncommon.
Lloyd’s of London managing agents ranked among the weakest performers, with few adopting coal restrictions or long-term net zero targets.
As a result, ShareAction and WWF have urged insurers to strengthen their climate, biodiversity and social policies. The organisations also called on governments to introduce stronger regulations to encourage responsible industry practices.
WWF Switzerland Financial Sector Engagement Lead Regula Hess said insurers could play a key role in accelerating the transition by supporting renewable energy, sustainable agriculture and climate adaptation projects, while helping businesses and communities better understand and prepare for physical climate risks.