Munich Re and Lloyd’s of London need to follow their European counterparts and reject the East African Crude Oil Pipeline (EACOP).
Hannover Re is the latest insurer to reject EACOP, joining Swiss Re, Axa, Zurich and SCOR in publicly committing that they will not underwrite the pipeline.
Last week, after SCOR committed not to insure EACOP, Hannover Re quickly followed suit, stating, “we refrain from providing reinsurance coverage for EACOP due to noncompliance with our ESG expectations. EACOP has been put on an exclusion list about a year ago and our facultative underwriters have been informed accordingly.”
"The statement by Hannover Re adds to the troubles the pipeline and its associated oil fields are facing. Momentum against the project is building with each day. The list of financiers and insurers rejecting EACOP is rapidly increasing. This is a testament to the resilience and determination from all quarters to defend humanity, livelihoods and the environment. We thank these insurance companies for choosing humanity over corporate greed and call on Munich Re and Lloyd’s of London to do the same.”
"Hannover Re’s commitment is part of its broader policy to not take on any new re/insurance for new oil or gas exploration, development, storage or pipelines. This policy and the recently updated oil and gas policy of Swiss Re, which has also rejected EACOP, puts the attention firmly onto Munich Re, the world's largest reinsurer. Munich Re CEO Joachim Wenning should respond with a world-leading oil and gas policy and a clear commitment not to re/insure EACOP.”
"Five of the world’s largest re/insurers have now declined coverage for EACOP due to environmental and social concerns, joining 15 commercial banks in renouncing the project. This is a remarkable number of institutions backing away, and with every new rejection, the controversy around this project continues to snowball. Soon it’ll be too toxic for any bank or insurer to touch.”
"Of the world's four biggest reinsurers, three have excluded reinsuring EACOP. It's now high time for Munich Re to follow suit. Nearly 50 years of warning against climate change needs to translate into concrete action. Not reinsuring new oil and gas projects is a crucial starting point.”