Last week, Florida Chief Financial Officer (CFO) Jimmy Patronis said Florida must push back against “Environmental, Social, and Governance” standards – known as ESG – which is beginning to spread throughout the global insurance market.
The CFO made the following comments at a meeting of the Florida Cabinet, saying the state entity charged with regulating insurers, the Florida Office of Insurance Regulation (FOIR), must assess the role of ESG in insurance markets, so Florida can better fight back:
Governor, thank you for your leadership in fighting back against ESG.
I believe ESG is un-American because global asset managers are using the woke-standards, to reengineer society, through billion-dollar industries.
It’s undemocratic.
Moreover, it appears it’s not confined to equities, alone.
It looks like insurance markets are beginning to write coverage based on ESG criteria.
For example, ESG factors were considered “drivers” for 13 percent for AM Best’s global ratings actions.
For those that don’t know AM Best is a Credit Ratings Agency, so that means ESG factors affected certain businesses ability to capitalize.
Capgemeni said in a report that 30 percent of Property & Casualty insurers will offer preferential treatment to policyholders who adopt “sustainability initiatives.”
Meanwhile, 27 percent will refuse coverage based on this criteria.
That means a lot of woke businesses will get better insurance products, while others who ignore ESG criteria, may not get any coverage.
In fact, at the Glasgow Financial Alliance for Net-Zero Conference, 450 firms agreed to align $130 trillion in assets with the Paris Agreement.
All of this means if you’re not woke enough, certain insurers will not cover you.
Meanwhile, as certain insurance companies have joined the cult of ESG, Florida is experiencing a hardening insurance market.
If insurance companies are charging a premium for ESG, then we need to know about it.
We know that asset managers are telling insurers to focus more on climate change, or they’ll lose money, or be sued. Or both.
One insurance expert said and I quote: “[P]roperty insurers will also be working harder on influencing how governments react to mitigate and monitor drivers of climate risk…”
That means insurers are planning to increase rates, or reduce coverage, to force governments to address ESG standards.
By their own admission, insurance is being used for social engineering, and I am concerned that Florida policyholders may be footing the bill for this woke-ism.
In the same way families are paying for Joe Biden’s inflation tax, Florida policyholders may be paying an “ESG fee” in their policies.
Meanwhile, the New York Department of Financial Services is telling the insurers that they must take into account ESG risks.
New York regulates 1,800 carriers who manage around $4.7 trillion in assets.
As Florida is doing a lot of great work with the SBA, I believe that we should be engaging OIR to assess ESG’s role with insurance.
We need to fight ESG within the insurance markets because it’s another theater of battle.
For the next Cabinet meeting we should add something to the agenda stating that Florida opposes ESG initiatives within the insurance sector.
Ultimately, Florida policyholders should not be footing the bill for woke insurance.
Thank you.
Author
