2020 Scorecard on Insurance, Fossil Fuels and Climate Change

The 2020 Scorecard reveals a growing trend of insurers retreating from coal, with at least 23 companies ending or limiting cover for coal projects. While coal insurance is becoming increasingly difficult and expensive to obtain, the report finds that the industry has largely failed to take comprehensive action on oil and gas. European and Australian insurers are leading the transition, whereas companies in the U.S., Japan, and the Lloyd's market are identified as laggards. The report also highlights a significant increase in coal divestment, with 65 insurers now having policies covering over $12 trillion in assets.

• The insurance industry is increasingly withdrawing support for coal, with at least 23 insurers and reinsurers now ending or limiting cover for coal projects, up from 17 in the previous year. These companies control 12.9% of the primary insurance market and 48.3% of the reinsurance market.
• The retreat from coal is creating tangible financial pressure for developers; coal companies are facing rate increases of up to 40% this year, and some projects, such as the Adani Group’s Carmichael coal mine, are struggling to find cover, with 27 international insurers publicly distancing themselves.
• Action on oil and gas insurance is significantly lagging behind coal. Only Australia’s Suncorp has announced a phase-out of cover for all oil and gas production. While some insurers like AXA and Swiss Re have introduced modest restrictions, the report notes that companies generally score three times higher for coal policies than for oil and gas policies.
• There is a significant geographic divide in climate leadership: European and Australian insurers are setting the pace, while U.S. and Japanese insurers are slow to act. AIG, Berkshire Hathaway, Sinosure, Travelers, and W.R. Berkley are specifically cited as having no restrictions on fossil fuel underwriting.
• Divestment from coal is accelerating, with at least 65 insurers now having adopted divestment policies or committed to no new coal investments. These assets are valued at more than $12 trillion, an increase from $8.9 trillion the previous year.
• Many insurers, particularly those in the U.S., are receiving negative scores for 'other climate leadership' because they support lobby organizations that oppose climate action. Conversely, Legal & General and Aviva are identified as leaders in this category.

APA

Mason, D., & Bosshard, P. (2020). 2020 Scorecard on Insurance, Fossil Fuels and Climate Change. Reclaim Finance. https://reclaimfinance.org/site/wp-content/uploads/2020/12/IOF-REPORT-2020-FINAL-1-1.pdf

Chicago

Mason, David, and Peter Bosshard. 2020 Scorecard on Insurance, Fossil Fuels and Climate Change. Reclaim Finance, 2020. https://reclaimfinance.org/site/wp-content/uploads/2020/12/IOF-REPORT-2020-FINAL-1-1.pdf.

Wikipedia

{{cite report |last1=Mason |first1=David |last2=Bosshard |first2=Peter |title=2020 Scorecard on Insurance, Fossil Fuels and Climate Change |publisher=Reclaim Finance |date=December 2020 |url=https://reclaimfinance.org/site/wp-content/uploads/2020/12/IOF-REPORT-2020-FINAL-1-1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mason20202020, author = {Mason, David and Bosshard, Peter}, title = {{2020 Scorecard on Insurance, Fossil Fuels and Climate Change}}, institution = {Reclaim Finance}, year = {2020}, month = dec, url = {https://reclaimfinance.org/site/wp-content/uploads/2020/12/IOF-REPORT-2020-FINAL-1-1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }