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 – Plain English Summary

This bill would place new rules on property insurance companies operating in Rhode Island, specifically around how they do business with fossil fuel industries. Under the bill, insurers would be restricted from providing coverage (underwriting) for new coal, oil, and gas projects, and would also face limits on investing their money in fossil fuel companies. The goal is to steer the insurance industry away from activities that contribute to climate change.

The bill also requires insurance companies to be more transparent about climate-related risks. Insurers would need to regularly report how climate change could affect their financial health and disclose information about the greenhouse gas emissions connected to their business activities. Additionally, companies would need to show that their overall practices align with science-based targets for reducing emissions — essentially, that their business plans are consistent with widely accepted climate science goals.

This legislation would primarily affect property insurance companies doing business in Rhode Island, which could in turn affect businesses and industries — particularly those in fossil fuels — that rely on those insurers for coverage. Homeowners and other policyholders could also be indirectly affected, depending on how insurers adjust their offerings and pricing in response to the new rules. The bill is still in its early stages — it has been referred to the Senate Commerce Committee and recommended for further study, meaning it has not yet moved toward a vote.