Legislation in Connecticut, the capital of the American insurance industry and home to several of its largest carriers, could make insurers pay for that contradiction. If passed, the bill, which just cleared a committee vote in the state Senate, would move toward imposing a fee for any fossil fuel projects companies insure in-state. That revenue would go into a public resilience fund that could underwrite sea walls and urban flood protection measures. The surcharge would apply only to fossil fuel projects these companies insure in Connecticut, avoiding that constitutional challenge.
The assessment would apply not only to new pipelines and fuel terminals, which require ample insurance to attract lenders and investors, but to current coverage for existing infrastructure as well. This means anyone covering the state’s dozens of oil- and gas-fueled power plants would be contributing to the resilience fund.
Connecticut wants to penalize insurers for backing fossil fuel projects