The insurance industry is fighting an effort in Connecticut — the so-called Insurance Capital of the World — to impose a climate surcharge on property coverage it sells to fossil fuel companies to fund resilience projects statewide.
The opposition, led by two powerful national industry groups, illustrates the ongoing challenges states face trying to launch programs that protect homes and communities from intensifying storms, floods and wildfires.
It also highlights the ongoing question of whether insurance companies — in addition to the fossil fuel industry — should pay to address climate change. A few states are contemplating litigation against property insurers for rate hikes that can be linked to climate change.
Connecticut legislators advanced a bill last week that would tack a 5 percent surcharge onto the insurance policies covering nearly all in-state infrastructure that stores, transports or distributes fossil fuels. The measure would give the state millions of dollars for projects to protect homes and communities from extreme weather.
