Regulates property insurers to limit underwriting and investment in fossil fuel projects, requires climate risk reporting and emissions disclosures, and aligns insurance practices with science-based climate targets.

Rhode Island Insurance Market Protection Act

This bill would place new rules on property insurance companies operating in Rhode Island, focused on their connections to fossil fuel industries. Specifically, it would limit how much insurers can invest in or provide insurance coverage for fossil fuel projects like oil, gas, and coal operations. The bill also requires insurance companies to publicly report on climate-related financial risks within their business and disclose the greenhouse gas emissions associated with their investments and underwriting activities.

The bill would also require insurance companies to align their business practices with "science-based climate targets," meaning their investment and coverage decisions would need to be consistent with broader scientific goals for reducing climate change. This represents a significant shift in how insurers would be allowed to operate, essentially restricting them from certain business activities that involve fossil fuels beyond specified limits.

This legislation would primarily affect property insurance companies doing business in Rhode Island, as well as businesses and industries in the fossil fuel sector that currently rely on those insurers for coverage. Rhode Island homeowners and businesses that purchase property insurance could also be indirectly affected, since changes to how insurers manage their investments and underwriting could potentially influence the availability and pricing of insurance in the state. The bill has been referred to the House Corporations Committee, meaning it is in the early stages of the legislative review process.