While coal premiums soar, insurance groups still supports oil and gas
(EurActiv, 2 Dec 2020) Insurance companies have accelerated their withdrawal from coal this year, making it costlier to secure insurance for new projects. However, the insurance industry is still underwriting oil and gas companies, according to new research.
Momentum is growing behind calls for the financial sector to withdraw from fossil fuels, according to the Insure Our Future campaign’s fourth annual scorecard, published on Wednesday (2 December).
“Insurers’ continuing shift away from fossil fuels is positive, but in the face of a worsening climate crisis it needs to accelerate,” said Peter Bosshard, Coordinator of the Insure Our Future campaign, which scrutinises insurers’ climate policies.
At least 23 companies have ended or limited their cover for coal projects since 2017, representing 12.9% of the primary insurance market and almost half of the reinsurance market, the report found.
More than 65 insurers with combined investments worth $12 trillion have either adopted a divestment policy or committed to making no new coal investments, it said.
“We can see that the momentum in coal is having an impact on the viability of many companies in the coal industry to secure insurance coverage. It’s not that easy anymore to secure such coverage,” said Lucie Pinson, executive director at Reclaim Finance, a green pressure group.