Ethical Insurance

What is ethical insurance?

Ethical insurance means that insurance companies invest responsibly. Unlike conventional insurers who may invest in controversial sectors like weapons or fossil fuels, ethical insurers prioritize investments in sustainable and socially responsible projects, like solar and wind energy. 

While the ethical insurance sector is still developing, transparency is key. Ethical Consumer assesses how transparent companies are with their investment policies, allowing consumers and NGOs to hold them accountable and encouraging better practices.

Which insurance companies are ethical in the UK? 

In reality, very few insurance companies in the UK are ethical – with only one standout ethical provider. Naturesave and its sister company Ecclesiastical aim “to sell insurance that is 100% fossil fuel free." While they haven’t got there yet, they do have policies to limit investments in coal and consider a range of other ESG factors – a step beyond most insurance brands.

Naturesave offers insurance for home, travel, renewable energy, businesses, and charities (but not car insurance).

However, you’ll want to check which company is acting as underwriter for the policy you plan to take out (we explain more in the box below). They usually work with Ecclesiastical, their sister company which shares their values, but for some policies the underwriter will be another investor which does not have the same ethics.

Are major insurance companies in the UK ethical?

Most other UK insurance companies perform badly when it comes to ethics.

Many are high risk for likely use of tax avoidance and several big names including AXA and Lloyds Bank have been named and shamed for their investments in nuclear weapons. Zurich and AXA continue to insure new oil and gas projects in defiance of climate science and evidence.

Our guides to Home, Car, Travel and Pet insurance rate and rank the major providers and compare steps they are taking to address climate change. We recommend one major provider taking a different approach. 

How to find an ethical insurance company?

Why is finding ethical insurance complicated? Often, the brand selling the policy isn't the one investing the money. Brokers sell policies, while underwriters manage investments (around £1.8 trillion in the UK) and handle claims. 

Focus on the underwriter's ethics. Ethical Consumer's guides for Home, Car, Travel and Pet insurance rate major and ethical underwriters, helping you find the most ethical options and potentially buy direct.

Want to research underwriters yourself? Here's how: 

1. Identify the underwriter for your policy (check the key facts document).
2. Review their investment policies. Do they restrict investments in coal or arms?
3. Find their investment list (the best companies publish these). Check for investments in fossil fuel companies like BP or Shell, or arms manufacturers like BAE Systems.

How to find other kinds of ethical insurance

Need ethical insurance beyond home, car, travel, or pet? Our guides can still help! Explore our Best Buy and Recommended companies, which may offer other insurance types like small business insurance. 

Use our ratings as a benchmark: check if companies you're considering are in our guides, as their ratings apply to all insurance types they offer. See our complete list of financial guides in the money section.