(Reuters) – Democrats on the U.S. Senate Budget Committee on Friday opened an investigation into major insurers including American International Group Inc. and Travelers Cos. Inc., and pressed them on their “support” for new fossil fuel projects.
“By underwriting and investing in new and expanded fossil fuel projects, America’s insurance companies are helping Big Oil move us closer to the worst runaway climate scenarios,” said committee chairman Senator Sheldon Whitehouse.
In addition to AIG and Travelers, Chubb Ltd., Berkshire Hathaway Inc., Liberty Mutual Insurance Co., Starr Insurance Cos. and State Farm also under the committee’s scanner.
Some insurers have also begun scaling back coverage in areas exposed to climate hazards such as wildfires, citing rising costs of claims.
Some insurance companies have begun scaling back coverage in disaster-prone areas, citing rising claims costs.
Late last month, State Farm said it would stop selling new insurance to California homeowners exposed to wildfires.
The companies did not immediately respond to Reuters̵7; request for comment.
Insurers were also asked whether they have clear guidelines for obtaining consent from indigenous peoples before underwriting or investing in projects that disproportionately affect such groups.
In addition to Senator Whitehouse, Senators Ron Wyden and Bernie Sanders are part of the group that started the investigation.
The companies were asked to provide information no later than June 16 and supporting documents no later than June 23.