"Fossil Fuel Investments Growing Riskier for Insurers, Report Warns"

"With nearly $500 billion invested, a new analysis recommends insurance companies take a harder look at the consequences of climate change and a lower-carbon future."

"The 40 largest insurance companies in the United States have $237 billion invested in electric and gas utilities, $221 billion tied to oil and gas companies and nearly $2 billion locked into coal, a new report reveals.

With nearly a half-trillion dollars in bonds, equity and other holdings tied to the fossil fuel industry, an analysis published Tuesday by the sustainability group Ceres says insurers should be evaluating their investment exposure to climate change risks.

Insurers "cannot afford to overlook this," warned Cynthia McHale, director of the insurance program at Ceres.

According to McHale, insurers face a lot of uncertainty in damage payouts to customers, because they don't know when, how often or how large those payouts will be. To ensure they have enough money to respond, insurers have historically been very conservative in their investments—and that's usually meant a lot of investments in fossil fuel companies and utilities."

Zahra Hirji reports for InsideClimate News May 24, 2016.