The Travelers Companies Inc: Disclose Risk Associated with Climate-Related Pricing and Coverage Decisions

WHEREAS: The United States is facing a climate-related insurance crisis. National insurance underwriting losses have risen dramatically, reaching a 10-year high of $38 billion in 2023, primarily due to climate-related factors including more frequent and intense weather related natural disasters and storms, reinsurance price increases, and rebuilding related inflation.[1] While the industry returned to underwriting profitability in 2024 through aggressive rate increases and policy non-renewals, catastrophe losses remained elevated—2024 was the second-costliest year for such losses.[2]

Travelers, one of California's largest home insurers, is no exception. Its catastrophe losses increased from $1.85 billion in 2021 to $3.33 billion in 2024.[3] In response, in 2024 Travelers requested approval to increase California rates by an average 15% for 320,000 policyholders and dropped policies in risky markets.[4] Yet, despite growing climate-related losses, Travelers continues to invest in and underwrite high carbon emitting companies. In 2024, Travelers had $1.9 billion invested in high-emitting companies.[5]

Increasing insurance rates and reducing insurance coverage in high-risk markets transfers the financial burden of climate change to policyholders, investors, and taxpayers. With nationwide insurance premiums increasing 34% between 2017 and 2023[6]— a rate 40% higher than inflation[7]— the number of Americans unable to afford insurance is increasing. The Consumer Federation of America estimates that 6.1 million households are uninsured, putting $1.6 trillion in property value at risk.[8]

As Travelers’ cancellations grow and climate-related rate increases outprice its customer base, it is unclear how Travelers will successfully maintain its homeowner business line, which makes up 50% of its personal insurance business.[9]

In Traveler’s TCFD climate risk discussion, the insurer notes it can reduce growing climate risk by adjusting its pricing and exposure in certain geographies — that is, by raising rates and reducing coverage.[10] However, Travelers fails to explain if or how it can retain sufficient homeowners’ policies to remain profitable as it makes these adjustments, especially as competition for limited markets grows.

Without transparent disclosure of how climate-driven pricing and coverage decisions affect customer retention and business viability, shareholders cannot adequately assess the long-term financial sustainability of Travelers' largest personal insurance segment or evaluate the insurer’s response to escalating climate risks.

BE IT RESOLVED: Shareholders request that Travelers provide, in its existing climate reporting, the expected impact of climate-related pricing and coverage decisions on the sustainability of its homeowners’ insurance customer base under a range of climate scenarios in the near, medium, and long-term.

[1] https://www.insurancejournal.com/news/national/2024/03/07/763884.htm

[2] https://www.insurancebusinessmag.com/us/news/property/pandc-returns-to-underwriting-profit-in-2024-529406.aspx

[3] https://investor.travelers.com/newsroom/press-releases/news-details/2025/Travelers-Reports-Exceptional-Fourth-Quarter-and-Full-Year-Results/default.aspx

[4] https://www.sfchronicle.com/california/article/travelers-insurance-rates-19441039.php

[5] https://investinginclimatechaos.org/data?org=Travelers

[6] https://www.insurancejournal.com/news/national/2024/09/26/794409.htm

[7] https://www.newyorker.com/news/the-financial-page/the-home-insurance-crisis-that-wont-end-after-hurricane-season

[8] https://climateandcommunity.org/research/insurance-financial-stability/

[9]https://asset.trvstatic.com/download/assets/Travelers_SustainabilityReport2024.pdf/dd9536f6147211f0b1567e3dc6af4176, p.5

[10]https://asset.trvstatic.com/download/assets/Travelers_TCFDReport2024.pdf/db0c21f6147211f093342a4bfe896913

Resolution Details

Company: The Travelers Companies Inc