Insurance companies invest their funds in the stock market and other areas just like investment companies do, but you are much less likely to know what your premiums are being invested in. Insurance companies also offset their liabilities by using re-insurance companies, who take a share of the potential liability, which makes it even more difficult to know if your premiums are being invested ethically.

Top ranked ethical insurance companies according to the Ethical Company Organisation include:

Animal Friends (pet insurance)

Co-operative Insurance Society

Ecclesiastical

Naturesave

And some of the major players:

Aviva

Norwich Union

Royal & Sun Alliance

Find more info at Gooshing.

See also Car Insurance.