The withdrawal of many insurers from the coal sector in recent years has made it much more difficult to insure coal-related projects, welcomed an NGO group on Wednesday, which, however, calls on companies to adopt the same policy with oil. and gas.
"The continued withdrawal of insurers from the coal sector makes it more difficult and more expensive to obtain insurance coverage for coal projects," said a report published by "Insure Our Future", a collective campaign of NGOs calling on insurers to pull out and stop insuring coal, tar sands, oil and gas and support the clean energy transition.
Coal insurance rates increase of up to 40%
In fact, most European and Australian insurers no longer insure new coal-related projects, while others are becoming more cautious and limiting their capacities, the report welcomes, noting that "coal companies were facing increases. tariffs of up to 40% ”.
In detail, "at least 23 insurers have ended or limited their coverage to coal projects, which represents 12.9% of the primary insurance market and 48.3% of the reinsurance market," he continues.
In addition, “insurers are also divesting from coal: at least 65 insurers with combined assets worth $ 12 trillion - probably over 40% of total industry assets - have either adopted a policy of divestment, or are committed not to make new investments in coal, ”he added.
“The gradual withdrawal of insurers from fossil fuels is positive, but in the face of the worsening climate crisis, it must be accelerated,” commented Peter Bosshard, coordinator of the “Insure our future” campaign.
Insurance has yet to take comprehensive action on oil and gas
Notably, “the major US insurers, the Lloyd's market and East Asia continue to insure coal and the global insurance industry has yet to take comprehensive action on oil and gas. gas ”, regrets the collective.
To date, "only nine insurers have limited or terminated their coverage for tar sands oil - against four last year," he said.
Among the European groups, the French Axa and Scor, but also the Germans Allianz, Munich Re or even the Swiss Zurich “must at least stop insuring and investing in companies that plan to open new oil reserves. and gas, ”notes Lucie Pinson, Managing Director of Reclaim Finance, a member of the collective.