Prof. Daniel Schwarcz Quoted by E&E News About Climate Change Effects on Insurers

Professor Daniel Schwarcz, Fredrikson & Byron Professor of Law and Distinguished University Teaching Professor, was quoted by E&E News about positions by insurance groups which support the fossil fuel industry’s effort to avoid liability for extreme weather damage. According to the Center for Climate Integrity, it reveals how insurers are ignoring the need to protect their policyholders against climate change. Insurers have paid increasing amounts in claims in recent years as the frequency and severity of extreme weather events has soared along with repair and reconstruction costs. But some groups that represent major property and casualty insurers and reinsurers, say local governments should be barred from suing energy companies under state law. The groups also warn that letting localities sue energy companies for climate change could harm U.S. energy security. As a result, insurers might curtail business with the sector, which would stifle investment in energy infrastructure. Prof. Schwarcz said the concern is “credible,” and that insurers might also fear that they would have to pay for climate litigation under expired policies sold to the oil and gas sector.