All insurers need to stop insuring new coal, oil and gas projects, now.

Insurers have the power to accelerate the phase out of fossil fuels and stop undermining climate change targets.

Without insurance, fossil fuel companies cannot dig new coal mines, build tar sand pipelines, and expand oil and gas production.

Oil & Gas

Only a few insurers have restricted cover for oil and gas

The oil and gas insurance market is highly concentrated among AIG, Chubb, Liberty Mutual, Lloyd’s of London, Mapfre, Tokio Marine, The Hartford, WR Berkley, Allianz, AXA, Munich Re and Zurich. While many insurers have adopted restrictions on extreme oil and gas projects, such as Arctic drilling and tar sands, most continue to insure the expansion of conventional oil and gas. 

The IEA has found that there is no space for new oil and gas projects if we are to prevent a rise in global temperature above 1.5°C. The insurance industry needs to align its business with climate science.

Coal

Most insurers are no longer insuring new coal projects, but they are not phasing out existing coal operations fast enough.

There’s a major loophole in reinsurer’s exit from coal: treaty reinsurance. While reinsurers controlling 56% of the market have adopted policies to stop direct coal coverage, they have failed to rule out coal from bulk-buy contracts or ‘treaties’.

With the exception of a few laggards in the U.S., Bermuda and East Asia, most insurers are no longer supporting new coal projects. But they don’t do enough to push the transition from existing coal to renewable energy fast enough.

Dirty projects: Climate-wrecking fossil fuel projects that should not be insured

Adani Carmichael Coal Project

Due to the climate impact, reputational damage and pressure from the #StopAdani movement, more than 70 financial institutions and 40 insurers have withdrawn from or committed not to be involved in the Adani Carmichael coal project.

Coal

Trans Mountain Pipeline (TMX)

Over 15 insurers have committed not to re/insure the Trans Mountain pipeline. In 2021, Trans Mountain was granted a request to keep its insurers secret, claiming public pressure was causing insurers to drop the project.

Tar Sands

East African Crude Oil Pipeline (EACOP)

An international coalition of organisations is calling upon leading brokers and re/insurers to pledge to not support the project due to its anticipated climate, nature and human impacts.

Oil & Gas

Number of companies with fossil fuel exclusion policies, by sector

Insurers, as society’s risk managers, should take responsibility to actively support global action to avoid climate breakdown, and drive the transition to a low-carbon economy. Without insurance most new fossil fuel projects cannot go ahead and existing ones must close.

 

Click here to view a detailed document on insurance company fossil fuel underwriting policies

Oil & Gas: 18

18 companies have committed to end or restrict underwriting for new oil and gas projects

Coal: 46

46 companies have committed to end or restrict underwriting for coal projects

Tar Sands: 26

26 companies have committed to end or restrict underwriting for tar sands projects