By Captain Ray Mallet isn’t sure why the shrimp stopped coming up the channel once the three methane export terminals arrived in his home of Cameron Parish, Louisiana. It could be the noise, heat from the plants, or the huge methane (also known as so-called liquefied “natural” gas or LNG) tankers bringing in too much saltwater. He does know that he can no longer get insurance for his shrimping business, or his house.
He’s not alone. 84% of Louisiana residents have experienced an increase in home and/or car insurance premiums in the last year. A 27% increase in property insurance rates is projected by the end of 2025 – the largest insurance cost increase of any state this year. Insurers would say that he lives in an area vulnerable to climate change, and the cost of paying out policies after hurricanes is what has driven up his costs or made insurers leave the area altogether.
Yet, the massive methane terminals in Cameron where he lives and shrimps are easily able to obtain insurance. This is what it looks like when the insurance industry gets it wrong on climate. There is no coverage for the average customer, but big oil and gas companies – which export products that make even deadlier hurricanes that cost insurers even more and force them to pull back coverage – are still able to get insurance. This is why Rainforest Action Network is focused on helping fisherfolk in Cameron talk to insurers that cover these big oil and gas companies and ask: Why is there coverage for them, and not for us?
Climate risk doesn’t care about politics. Cameron is famous for being in an area where a majority of voters cast their ballot for Trump. So when Chubb, which insures some of the methane export terminals in the area, is attacked for being too green – it doesn’t make sense. Chubb gets 77% of its direct energy premiums from fossil fuels, almost $1Billion (pg 27 in link).
For the insurance sector, climate risk has immense economic impacts: over a third of weather-related insured losses are climate attributable. In the last twenty years, the insurance industry has lost about $600 billion due to climate change events. Payouts from climate disasters are eclipsing fossil fuels premiums. For fifteen major insurers (half of those analyzed in the latest Insure Our Future report) climate losses exceed earnings from fossil fuel underwriting.
Meanwhile, folks in Cameron Parish want renewable energy in their area instead. That wouldn’t affect the shrimp. Insuring a renewable buildout would decrease absolute emissions, which would make hurricanes less devastating and insurance premiums more attainable. Fiduciary duty requires financial institutions to factor risk into investment decisions and prioritize long-term profitability. Fringe actors that compel them to ignore this risk to the benefit of special interest groups would also compel them to violate this duty.
Moreover, there’s consumer demand for renewable investing and insurance. Surveys show up to a 77% consumer interest in ESG and sustainable investing, with the percentage being consistently higher for those under 50. The science and economics of insurance isn’t political, despite what some may try to say. Insurers have to lead the way in a just transition to renewable energy, starting with an immediate cessation of insuring fossil fuel expansion that kills economies in places like Cameron Parish, Louisiana.
