Major US consumer groups have criticized the insurance industry for its continued investment in fossil fuel projects, which exacerbates climate change and drives up homeowner premiums. The American Property Casualty Insurance Association lobby group was on Capitol Hill recently, despite their industry underwriting oil and gas expansion projects.
The four organizations – U.S. PIRG, Consumer Federation of America, Americans for Financial Reform, and Public Citizen – argue that insurers raise customer premiums to pay for billions of dollars in claims caused by climate change events like tornadoes, hurricanes, and wildfires. Illinois saw the second-highest premium increases from 2021 to 2024, with an average premium of $2,942.
Consumer advocates say the industry’s focus on wildfire prevention and community resilience is insufficient, while some insurers have adopted restrictions on underwriting coal projects. However, rather than prioritizing cleaner energy, the US insurance industry has pushed for policies that address mitigation efforts but do not acknowledge the root cause of climate change.
The National Association of Insurance Commissioners’ recent legislative priorities list did not mention addressing climate change, sparking criticism from advocates who say regulators need to take action. Consumer groups warn that dropping insurance can lead to foreclosure and financial exposure for homeowners, particularly in low-income communities where affordable housing is stifled by rising premiums.
As the administration rolls back climate change efforts, including withdrawing from the Paris Agreement and pausing wind power development, consumer advocates stress that the problem of rising homeowner insurance costs goes beyond coastal states.
Source: https://chicago.suntimes.com/the-watchdogs/2025/05/22/homeowners-insurance-premium-rates-climate-change-weather