Testimony: Connecticut Should Establish a Climate Insurance Surcharge
Testimony of Rick Morris in Support of Connecticut S.B. 453, An Act Concerning A Climate Change Related Surcharge on Certain Insurance Policies
Environment Committee
Legislative Office Building, Room 3200
Hartford, CT 06106
March 13, 2026
Chairman Senator Lopes, Chairman Representative Parker, and honorable members of the Environment Committee,
My name is Rick Morris and I am the senior insurance campaigner with Public Citizen, a national public interest advocacy organization with over 25,000 members and supporters here in Connecticut.
I am here to testify in strong support of S.B. 453, An Act Concerning A Climate Change Related Surcharge on Certain Insurance Policies.
Connecticut faces a fast-growing home insurance affordability crisis driven by climate change. The state needs to act now to protect homes and household budgets by lowering the risk, both by building physical resilience and addressing the root cause: fossil fuels.
While proven solutions can lower costs by building resilience, many households need upfront financial support. Connecticut should build a comprehensive home risk reduction grant program, funded by the highly profitable insurance industry, which had $1.2 trillion left over last year after paying claims.
As a historically insurance-centered state facing high climate risk, Connecticut should lead in keeping coverage affordable and should not wait for the federal government to fund it. Connecticut should look to innovative sources for near-term investments, where even modest investments made early can pay off. Every $1 spent on resilience saves $13 in economic impact, damage, and cleanup costs later on.
Grant programs in 10 states show that targeting vulnerable homes for upgrades lowers losses and expands adoption beyond initial recipients. For example, in Alabama, homes retrofitted to the Fortified standard had a loss frequency 55–74% lower than conventional homes in the storm’s path during Hurricane Sally.
To fund this program, Connecticut should look first to the industry that stands to benefit the most, the insurance industry itself. The state has the authority to raise industry fees and surcharges now. States that already use industry funding include Alabama, Oklahoma, North Carolina, and Maine.
While insurance companies stand to benefit from a resilience program, insurance companies fuel the climate crisis by recklessly investing over half a trillion dollars in fossil fuel projects. A commercial policy surcharge as described in this bill will recover a small slice of the profits from these fossil fuel-related insurance transactions.
Connecticut’s insurance affordability crisis is not inevitable. By investing in resilience and emissions reduction, targeting support to vulnerable households, and securing sustainable funding, the state can stabilize insurance markets and protect residents from rising climate risks.
The people of Connecticut are already paying enough. It’s time for the historically profitable industries driving this climate and insurance crisis to pay their fair share.
We urge the committee to pass S.B. 453. Thank you for your time and support on this issue.