Hiscox to eliminate exposure to coal and Arctic energy exploration
Hiscox is the latest insurance company to announce it will eliminate its insurance, reinsurance and investment exposure to coal-fired power plants and coal mines.
The Bermudian-headquartered company, which also operates Hiscox Re & ILS, has become the 32nd insurer to rule out underwriting Adani’s Carmichael coal project in Queensland, Australia. The mine is expected to produce eight to ten million tonnes of thermal coal annually.
Climate campaigners aligned to the Stop Adani movement said Hiscox staff had told them the company had no interest in coal mines such as Adani.
In addition, in a report accompanying Hiscox’s full year results, Hiscox’s chief executive Bronek Masojada said the company is committed “to steadily reduce and eliminate by 2030 our insurance, reinsurance and investment exposure to coal-fired power plants and coal mines; Arctic energy exploration, beginning with the Arctic National Wildlife Refuge; oil sands; and controversial weapons such as landmines”.
He said the commitments were aligned with the Lloyd's ambitions announced in December and will take effect from January 1, 2022, “though their implementation has already begun”.
Lloyd’s asked managing agents to no longer provide new insurance cover for coal-fired power plants, thermal coal mines, oil sands and new Arctic energy exploration.
Among other re/insurers who have distanced themselves from the Adani Carmichael project are Axis Capital, Axa XL and Aspen Re.
Pablo Brait, a campaigner with Market Forces, said: "With Hiscox's announcement, four of the five biggest Lloyd's insurers are now publicly refusing to underwrite the Adani Carmichael project. Every insurance company on Earth should be running a mile from this climate-wrecking mine. The project will help open up a massive new thermal coal basin in the midst of a climate crisis, it is being contested by Traditional Owners who have not given their consent, it is destroying endangered species habitat and draining water supplies.
“Adani Carmichael is a reputation destroyer for any company associated with it. Other Lloyd's insurers, including MS Amlin, Lancashire and Hamilton must now also distance themselves."
Bermudian-based Hamilton Insurance Group told The Royal Gazette: “Hamilton is completing the integration of businesses acquired during a deal with Liberty Mutual. Once we finalise our integration, which is expected to be in mid-2021, we will review our Environmental, Social and Governance principles to ensure they reflect the underwriting guidelines of our expanded enterprise.”