Only 22 of 148 U.S. insurance companies evaluated in a report released Thursday by Ceres have adequately addressed climate risk, according to the nonprofit sustainability-focused organization.
Ceres judged insurance companies in five areas: governance structures to address climate risk; climate risk management programs; use of catastrophe or other computer modeling tools to manage their climate risks; engagement with stakeholders on the topic of climate risk; and how they are measuring and reducing greenhouse gas emissions.
Companies were then placed in one of four groups based on their performance: high, medium, low, and minimal quality. The 22 insurers that ranked in the high-quality tier actually represent a dramatic increase in that group in last report. “That is more than double the nine companies that earned a top rating in Ceres’ 2014 report. However, 64 percent of the total insurers earned Low Quality or Minimal ratings,” Ceres said.
The report also finds that the largest insurers have improved the most, “especially in terms of governance practices related to climate risk management.” Some top-ranking insurers include MetLife Group, Liberty Mutual, and Prudential of America.
Unfortunately, according to Ceres, “Health insurers showed a continued general lack of understanding about climate risks, despite growing scientific evidence linking climate change to increased morbidity and mortality impacts.”