Climate Change

What is it?  Global climate change has emerged as a critical public policy issue for our nation and the world. There are differing views within the scientific community as to the causes and/or effects of such warming.

What do others say?  Information on global climate change is offered by insurance industry sources other than State Farm. These following links are provided for informational purposes only – State Farm does not necessarily endorse all views represented here:

• Insurance Information Institute whitepaper on Global Climate Change and Extreme Weather as it relates to insurance
• National Association of Mutual Insurance Companies (NAMIC) Web site on climate change and the insurance industry

What is State Farm’s position?  As the largest insurer of homes in the U.S., State Farm is very concerned about natural and man-made causes of property damage. State Farm is involved in several efforts to help our customers mitigate these losses.

State Farm is concerned about the prospect of global climate change, its possible impact on severe weather patterns, and the challenges this presents to the business of insurance. Regardless of whether climate variations are the result of global climate change (or warming) or whether they are due to natural climate variability – we are committed to working with our industry and government partners to understand the issue and quantify its potential ramifications, and to engaging in the public dialogue about these important issues.

State Farm continues to invest in the most current tools and techniques available to model severe weather events to be able to price and underwrite insurance for millions of American homeowners and businesses.

We are working with organizations all across the country – organizations like the Institute for Business and Home Safety (IBHS) and Protecting America – to help protect our customers from the human injuries, property destruction and financial impact that can result from natural disasters.  We must make sure the homes built and repaired today are better able to withstand the forces of nature.

In addition, we believe that all businesses should operate in an environmentally responsible manner, and we have long engaged in a variety of internal efforts to reduce our energy usage and focus on renewable resources. We also endorse the Business Roundtable RESOLVE (Responsible Environmental Steps, Opportunities to Lead by Voluntary Efforts) initiative that seeks to have every company in every economic sector undertake voluntary actions to reduce the emission intensity of Greenhouse Gases (GHG) by 18 percent between 2002 and 2012.  We continue to explore other opportunities to improve the environment that are in the best interests of our policyholders.

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