Travelers Insurance Attempts to Block a Shareholder Proposal Asking It to Disclose the Impact of Climate-Related Price Increases and Coverage Reductions to Its Continued Profitability
FOR IMMEDIATE RELEASE
Travelers Insurance Attempts to Block a Shareholder Proposal Asking It to Disclose the Impact of Climate-Related Price Increases and Coverage Reductions to Its Continued Profitability
Travelers’ investments in and underwriting of high carbon polluters adds to extreme weather which is making premiums unaffordable for millions of homeowners
MEDIA CONTACT: Ryon Harms, ryon@asyousow.org, (310.730.9407
EL CERRITO, CALIFORNIA—March 6, 2025— Today, shareholder representative As You Sow released its response to Travelers’ “No Action” challenge at the SEC to its climate related resolution. The resolution asks the company to disclose the effect of its climate-related pricing and coverage decisions and how those decisions may impact its future business under a range of climate scenarios.
Travelers has remained profitable in the face of extreme, climate-related weather events --including fires and hurricanes -- by significantly raising insurance premiums or ending coverage in catastrophe-prone markets. The question asked by shareholders is: what is the expected impact of its climate-related pricing and coverage decisions on the sustainability of its homeowners' insurance customer base under a range of climate scenarios.
Nationwide, insurance premiums have increased 34% between 2017 and 2023, outpacing inflation by 40%. With premiums soaring and coverage shrinking for nearly half of homes in the United States, millions of Americans have been left uninsured or unable to afford coverage for their homes. Many Americans are also deciding to forgo insurance in hard-hit areas like Florida. A new report from First Street shows that the rising costs of climate change could “obliterate” nearly $1.5 trillion in U.S. home values.
“Insurers are competing for a quickly shrinking market amid a climate-fueled insurance crisis,” said Danielle Fugere, President of As You Sow. “Shareholders reasonably seek information on how this will impact Travelers’ future business and whether the company’s decisions are contributing to this growing problem.”
“Through its SEC challenge, Travelers asserts that these questions are too complicated for shareholders to understand and that the proposal impermissibly ‘micromanages’ the company,” said Fugere. “To the contrary, investors are not dictating an overly specific action from the company related to how it can reduce its climate impact. Rather, they seek to understand how Travelers pricing and coverage decisions affect the long-term viability of the company. Understanding whether the current insurance model will remain profitable as climate-related catastrophes grow in number and intensity is crucial to informed investor decision making.
In addition to filing a resolution with Travelers, As You Sow this year filed climate-related resolutions with Allstate, Berkshire Hathaway, Chubb, and The Hartford which ask these major insurers to disclose and/or reduce the greenhouse gas emissions from their ongoing investments and underwriting decisions. A new Insure Our Future report found that Travelers, The Hartford, Berkshire Hathaway, and Chubb, underwrote billions of dollars in direct premiums to commercial fossil fuel clients in 2023, adding to the frequency and intensity of catastrophic weather events that increase risk to insurers, their customers, and the wider economy.
“The climate has warmed less than 1.5 degrees Celsius,” said Andrew Behar, CEO of As You Sow. “What happens at 1.75 degrees, 2 or even 3 degrees of warming? Is there a viable business model for Travelers under these scenarios? Similarly, are insurers reducing their own contributions to climate change to protect their businesses and reduce growing market instability? All fair questions for investors.”
Last year, As You Sow’s resolutions urging Chubb, Berkshire Hathaway and Travelers to disclose and reduce their GHG emissions from their underwriting and investment activities were approved by the SEC in the face of company “No Action” challenges.
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As You Sow is the nation’s leading shareholder representative, with a 30-year track record promoting environmental and social corporate responsibility. Our issue areas include climate change, ocean plastics, toxins in the food system, biodiversity, racial justice, and workplace diversity. Click here to view As You Sow’s shareholder resolution tracker.