Yet another big corporation is facing backlash for allegedly putting profits over people and the environment.
The Travelers Companies, better known as simply Travelers Insurance, is under fire after being accused of attempting to block shareholder efforts to gain transparency about how the insurer's decisions pertaining to the effects of increasing global temperatures are impacting both customers and its long-term business health, according to Insurance Newsnet.
What's happening?
Travelers is an insurance company that provides coverage to millions of Americans but is now being criticized for how its decisions may be leaving vulnerable customers in the dust.
Shareholders have filed a proposal urging Travelers to disclose how rising insurance premiums and coverage cuts affect its profits and customer base.
According to the shareholder advocate group As You Sow, Travelers has continued to stay profitable even with disasters like wildfires and hurricanes sharply increasing rates or pulling out of high-risk markets altogether.
While such disasters have always happened periodically, scientists say the rates of the ones influenced by heat — such as increasing dry conditions that can lead to fires, or warm ocean temperatures that can lead to hurricanes — have increased as global temperatures have risen.
Instead of allowing shareholders to vote on the proposal at its 2025 annual meeting, Travelers appealed to the Securities and Exchange Commission to reject it. The company claims the request "micromanages" its business and is too complex for shareholders to evaluate.
Andrew Behar, CEO of As You Saw, isn't buying it. "Rather than address these material questions, Travelers asked the SEC to silence its own investors," said Behar.
"How the SEC will decide is unknown and may be a harbinger of what's to come for responsible investors given the new administration's recent actions to curtail shareholder rights," Behar added.
Why is this important?
Travelers is far from alone in facing scrutiny from everyday Americans. Insurance premiums across the U.S. rose by 34% between 2017 and 2023, outpacing inflation and leaving millions of homeowners without affordable coverage, particularly in disaster-prone states like Florida.
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Definitely 🙁 A recent report from First Street warned that climate-related risks could erase nearly $1.5 trillion in U.S. home values.
This issue reflects how global overheating, driven by burning dirty fuels like coal, oil, and gas, fuels more severe storms, fires, and flooding. As these disasters intensify, insurance companies raise rates or exit markets entirely, leaving families unprotected and vulnerable.
This story boils down to a lack of transparency. Customers and investors alike are left in the dark about whether short-term profits are coming at the expense of long-term stability and community well-being.
What's being done about this?
Many organizations are working to ultimately address the root cause: transitioning away from polluting energy sources.
Companies like EnergySage are helping homeowners adopt affordable solar energy, reducing reliance on dirty fuels and managing costs. You can also learn more about critical issues in this area and better understand how everyday choices — from electrifying your home to supporting sustainable policies — can play a small role in helping to slow global overheating and protect communities. In most cases, these decisions save money anyway.
Beyond that, if you live in a vulnerable area, it may be a good investment to explore wildfire-proofing your property or making it more resilient against hurricanes so that you are less reliant on insurance protections in the first place.
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