California Insurance Commissioner Calls for Insurance Divestment from Coal

California Insurance Commissioner Dave Jones in January asked all insurance companies doing business in California to voluntarily divest from their investments in thermal coal as part of a nationwide call to reduce carbon emissions to do battle with climate change.

Complying with this request would include making no new investments, it would not require not renewing any existing investments and selling or withdrawing from existing investments in thermal coal, according to the California Department of Insurance.

Commissioner Jones also announced that in April he will initiate a data call that requires insurance companies to disclose annually their carbon-based investments including those in oil, gas and coal.

These required financial disclosures will be made public and will be used by the CDI to assess the degree of financial risk posed to insurance companies by their investments in the carbon-based economy.

Jones said his decision to ask insurance companies to divest from thermal coal and to require insurance companies to disclose investments in “the carbon economy” arises from his responsibility to make sure insurance companies address potential financial risks in the reserves they hold to pay future claims.