Last Updated on February 2, 2025 by BVN
Overview: California is grappling with escalating insurance costs driven by climate disasters, leading to a new bill introduced by Senator Scott Wiener to hold fossil fuel companies accountable for the destruction linked to climate change. The bill, the Affordable Insurance and Climate Recovery Act, would allow individuals and insurers to seek damages from fossil fuel companies for the costs associated with climate-driven disasters, including wildfires, mudslides, and rising sea levels. If passed, it would provide financial relief for policyholders and stabilize California’s strained insurance market. The bill has been backed by organizations such as the Center for Climate Integrity, California Environmental Voters, and Extreme Weather Survivors, and is expected to face opposition from the fossil fuel industry and some business groups.
Aryana Noroozi
As California grapples with escalating insurance costs driven by climate disasters, a new bill introduced by Senator Scott Wiener (D-San Francisco) seeks to shift financial responsibility from homeowners to fossil fuel companies.
Senate Bill 222 (SB 222), the Affordable Insurance and Climate Recovery Act, aims to provide financial relief for policyholders while holding major oil and gas corporations accountable for the destruction linked to climate change.
If passed, SB 222 would allow individuals and insurance providers to seek damages from fossil fuel companies for the costs associated with climate-driven disasters, including wildfires, mudslides, and rising sea levels. The bill also seeks to stabilize California’s strained insurance market by allowing insurers and the state’s last-resort insurance program, the FAIR Plan, to recover financial losses from these companies.
A Tumultuous Insurance Market
The increasing severity of climate disasters places immense pressure on California’s insurance industry. Growing climate disaster risks have led insurers to increase rates significantly—by as much as 48% for some families—while others have stopped renewing policies altogether.
Between 2020 and 2022, 2.8 million homeowner policies were not renewed. Over half a million of those were in Los Angeles County. This has forced many homeowners into the FAIR Plan, which saw a 300% increase in coverage from 2020 to 2024.
Without intervention, experts warn, the costs of insuring homes and businesses could become unsustainable for Californians. Senator Wiener argues that SB 222 offers a necessary financial safeguard.
“Californians are paying a devastating price for the climate crisis as escalating disasters destroy entire communities and drive insurance costs through the roof,” Wiener stated. “Containing these costs is critical to our recovery and to the future of our state. By forcing the fossil fuel companies driving the climate crisis to pay their fair share, we can help stabilize our insurance market and make the victims of climate disasters whole.”
Holding Polluters Accountable
Environmental advocates and lawmakers supporting SB 222 say fossil fuel companies should be financially responsible for the crisis they helped create. The bill’s co-authors include Assemblymember Al Muratsuchi (D-Torrance) and Senators Sasha Renée Pérez (D-Pasadena), Lena Gonzalez (D-Long Beach), Caroline Menjivar (D-San Fernando Valley), Henry Stern (D-Los Angeles), and Jerry McNerney (D-Stockton), among others.
Senator Pérez, who represents an area devastated by the recent Eaton Fire, stressed the need for corporate accountability.
“The Eaton Fire destroyed over 9,000 structures in my district, wiping out almost the entire town of Altadena. What makes this worse is that decades ago, Big Oil knew this would be our future, but prioritized lining their own pockets,” she stated. “The Affordable Insurance and Climate Recovery Act will hold the oil industry responsible for the damage it has inflicted.”
SB 222 is backed by organizations such as the Center for Climate Integrity, California Environmental Voters, and Extreme Weather Survivors. Advocates argue that making polluters pay will relieve taxpayers from shouldering the burden of climate recovery costs.
A Legal Path for Recovery
Under SB 222, individuals and insurers could pursue legal action against fossil fuel companies responsible for climate-related damages. If independent assessments confirm that legal action against polluters would provide financial benefits, the FAIR Plan would be required to pursue litigation on behalf of policyholders.
Supporters of the bill argue that this legal mechanism will help stabilize California’s struggling insurance market. Jamie Court, president of Consumer Watchdog, framed the bill as both a relief effort and a means of accountability.
“Oil companies caused climate change and profited wildly by knowingly hiding the consequences from the public for decades. They should pay their fair share for the damage their actions caused,” Court noted in a statement.
The Road Ahead
As SB 222 moves through the legislative process, it is expected to face opposition from the fossil fuel industry and some business groups concerned about litigation costs. However, with insurance prices soaring and more Californians losing coverage, lawmakers see it as a necessary intervention to protect consumers and hope it will mark a turning point in the fight for climate accountability.
For families who have lost their homes and businesses in recent climate disasters, the stakes couldn’t be higher. “Telling my son his school burned down during the fires was one of the hardest things I ever had to do,” Amanda McPhillips, a mother of two who was displaced by the Los Angeles wildfires, stated in the bill’s announcement. “SB 222 means the cost is not only on us—it’s also on the companies who helped cause these disasters.”
