SEC Rules Travelers Must Face Climate Risk Resolution
FOR IMMEDIATE RELEASE
SEC Rules in Favor of Shareholder Proposal at Travelers on Climate Risk
As You Sow’s proposal requests that Travelers disclose the expected impact of its climate-related pricing and coverage decisions on the sustainability of its homeowner’s insurance
MEDIA CONTACT: Ryon Harms, ryon@asyousow.org, (310) 730-9407
EL CERRITO, CA—March 26, 2025— Today, the Securities and Exchange Commission (SEC) ruled that Travelers Companies must face a shareholder resolution on climate risk filed by shareholder representative As You Sow. The resolution, which will now proceed to a shareholder vote, requests that Travelers disclose the expected impact of its climate-related pricing and coverage decisions on the sustainability of its homeowners' insurance business under various climate scenarios.
“This is a win for investors seeking transparency on how the insurance industry is responding to climate change,” said Danielle Fugere, President of As You Sow. “Travelers acknowledges that it adjusts pricing and coverage as climate risks grow, but the Company has failed to demonstrate how it will maintain a stable and profitable customer base amid rising climate-related disasters.”
The climate-driven insurance crisis is intensifying, with insured losses in the U.S. reaching a record-breaking $113 billion in 2024. Insurers, including Travelers, have responded by raising premiums and withdrawing coverage in high-risk areas, leaving millions of homeowners uninsured or unable to afford protection. Nationwide, insurance premiums have increased by 24% between 2017 and 2023, far outpacing inflation.
Travelers, one of the largest home insurers in the U.S., saw its catastrophe losses jump from $1.85 billion in 2021 to $2.99 billion in 2023. In response, the company had a record-setting average renewal premium increase of 19.8% in 2023.
“Investors are asking a fundamental question: can Travelers maintain a viable homeowners' insurance business as climate impacts accelerate?” said Andrew Behar, CEO of As You Sow. “Transparency is needed on the impacts of climate-related pricing and insuring decisions.”
The SEC’s decision to reject Travelers’ No Action request, which argued “micromanagement,” underscores the significance of addressing climate risk to the long-term business model of insurers. In its No Action challenge, As You Sow highlighted that increasing premiums and cancellations could impact the size of Company’s customer base—making Travelers’ response to climate-related losses material to the value of the Company.
This victory builds on As You Sow’s broader engagement with the insurance sector. In addition to Travelers, the organization has filed climate-related shareholder resolutions with Allstate, Berkshire Hathaway, and The Hartford, urging greater disclosure and accountability on underwriting and investment practices that contribute to climate risk.
As You Sow will continue pushing for accountability to ensure that insurance companies address the long-term sustainability of their business in a rapidly changing climate.
About As You Sow
As You Sow is the nation’s leading shareholder representative, with a 30-year track record promoting environmental and social corporate responsibility. Its focus areas include climate change, ocean plastics, toxins in the food system, the Rights of Nature, racial justice, and workplace diversity. Click here to view As You Sow’s shareholder resolution tracker.