INSURANCE
Covering Fossils, Uncovering Disaster
The insurance industry plays a critical yet often overlooked role in the climate crisis. Without insurance, fossil fuel projects—coal mines, oil pipelines, gas terminals—cannot be built or operated. By refusing to insure these projects, insurers have the power to slow down and stop the expansion of fossil fuels. Yet, many insurance companies continue to support the industry driving climate destruction.
Insurance companies play a dual role in this crisis: not only do they provide coverage for fossil fuel companies, but they also act as major investors and shareholders in these industries. A recent assessment of Swiss non-life insurers found that none of the eight evaluated companies have exclusion policies aligned with the 1.5-degree climate target. The most significant gaps exist in policies addressing conventional oil and gas.
INSURE OUR FUTURE
To challenge this, BreakFree Suisse is part of the global Insure Our Future coalition, which pushes insurers to stop underwriting and investing in fossil fuels. Every year, the coalition publishes a global Scorecard evaluating the biggest insurers on their climate policies and commitments. This transparency puts pressure on insurance companies to take real action.
In Switzerland, we specifically target Zurich Insurance and Swiss Re, two of the world’s largest insurers. Thanks to sustained pressure from activists, they have changed their policies, stepping away from some fossil fuel projects. But their commitments remain insufficient, and they continue to insure climate-wrecking projects worldwide.
Brandnew Report: Swiss Insurance Climate Rating
On March 27, we co-released the first Swiss Climate Ranking on Insurance & Investments, analyzing the role of Swiss insurers in fossil fuel financing.
This report sheds light on the contradictions between their climate commitments and their actual business practices. It provides a clear tool to hold them accountable and push for stronger policies.
Zurich Insurance: A Step Forward, but Not Enough
In April 2024, Zurich Insurance Group AG announced a significant shift in its underwriting policies, stating it would no longer underwrite new oil and gas projects and would implement stricter measures for clients planning to expand in metallurgical coal mining. This decision aligns with Zurich’s goal of achieving net-zero emissions by 2050. Sierra Signorelli, Zurich’s Chief Executive of Commercial Insurance, emphasized that further exploration and development of fossil fuels are unnecessary for the transition to cleaner energy sources.
This policy shift did not happen in a vacuum. It came in direct response to growing pressure from civil society, including sustained campaigning by our organization and others in the Insure Our Future network. Our actions during the Global Week of Action in particular helped push Zurich to recognize its responsibility in the climate crisis and take concrete steps.
The shift is especially meaningful given Zurich’s previous role in insuring fossil fuel infrastructure, from North Sea oil drilling to U.S. natural gas export terminals. In 2023 alone, clients in these sectors generated around $2.1 billion in premiums—roughly 7% of Zurich’s total commercial insurance business.
Swiss Insurers Fueling Environmental Destruction
One of the most striking examples of Swiss insurers supporting fossil fuel expansion is the Calcasieu Pass LNG terminal in Louisiana, USA. This recently commissioned liquefied natural gas facility has faced fierce opposition from local communities due to severe environmental and social impacts. Reports highlight excessive gas flaring, emissions exceeding legal limits, water pollution, and the destruction of traditional fishing grounds.
Residents who depend on these ecosystems for their livelihoods have been particularly affected. Solomon Williams Jr., a fisherman from a long-standing local fishing family, describes the devastating consequences: “The terminal pollutes the waters where my oysters feed and spawn, leaks chemicals into the ecosystems we rely on, and fuels the climate crisis, making these waters hotter and more unpredictable. The air and water pollution are making our families sick. Our children are developing asthma and skin diseases. Many of us are getting cancer. Every day that Calcasieu Pass LNG operates, it causes irreversible harm.”
Despite these well-documented harms, major Swiss insurers—including Swiss Re, Zurich, Helvetia, Allianz, and AXA—are listed as insurers for the project, as confirmed by the facility’s insurance certificate valid until March 14, 2025. Their continued support enables the ongoing operation of a project that directly endangers both local communities and the global climate.
PAST ACTIONS
Swiss Insurance Climate Ranking: Who is Fueling the Climate Crisis?
Swiss insurance companies play a dual role in the climate crisis, both as insurers and investors in fossil fuel-related projects. But are they taking responsibility? The new Swiss Insurance Climate Rating, published by Campax and BreakFree, reveals shocking gaps in...
Zurich Insurance : un pas en avant, mais insuffisant
Zurich Insurance Group annonce qu’elle ne souscrira plus de nouveaux projets pétroliers et gaziers. Elle prévoit également des critères plus stricts pour les entreprises qui souhaitent étendre leurs activités dans le charbon métallurgique. Cette décision s’inscrit...