Adani insurer Apollo drops Carmichael coal project as 1700 tune in to take on global insurance giant Lloyds at #StopAdani rally
- Adani Insurer Apollo drops insurance cover for Adani’s coal mine, port and rail
- Apollo reveals Adani still doesn’t have full insurance cover for their port and rail
- 27 insurers, including 17 insurers in the Lloyd’s of London marketplace, have now ruled out covering Adani’s Carmichael coal project
- 1700 tuned in to #StopAdani rally to make over 500+ calls and send 900+ calendar invites to CEOs of Lloyds insurers
LONDON: Adani’s Insurer and Lloyd’s of London Syndicate Apollo has dropped Adani’s Carmichael coal project after pressure from the community and #StopAdani movement. Apollo confirmed that the insurer will not provide cover for Adani’s coal mine, rail project or coal port after their current construction policy terminates in September 2021.
The insurer also revealed that Adani is still looking for insurance for the port and rail elements of their Carmichael coal project, that Apollo refused to participate in. In an email to Market Forces, Apollo Syndicate Management said:
I can confirm that we participate in one construction liability policy in respect of Adani Carmichael. This particular policy terminates in September 2021 after which we will no longer provide any insurance cover for this project. We have recently declined to participate in an additional policy relating to the Port and Rail extension and have agreed that we will not participate in any further insurance policies for risks associated with this project.
The news came as 1700 people from around the world tuned in to a #StopAdani online rally, sending over 900 calendar invites to each CEO of remaining Lloyds insurers yet to rule out Adani, and making over 500 direct calls demanding global insurance giant Lloyd’s stop providing insurance cover for Adani’s Carmichael coal project.
Insurers are rapidly retreating from Adani’s coal project, 27 insurance companies have now refused coverage, raising doubts about Adani’s ability to secure critical insurance to operate the coal project. The Stop Adani movement is escalating pressure on global insurance giant Lloyds. Campaigners are calling on insurance companies within Lloyd's market to rule out insurance for Adani and for Lloyd’s to put in place regulations that commit all of Lloyd’s market members to not insure new fossil fuel projects.
Pablo Brait, Campaigner at Market Forces, said: "It is encouraging to see that Apollo is now refusing future insurance to Adani. We hope to see many more Lloyd’s insurance syndicates make this commitment, particularly Arch, Brit and Hiscox. What Adani must now explain to its investors, bankers and contractors is how exactly it plans to insure the Carmichael mine into the future. With the mainstream insurers and now the Lloyd's market turning their backs, how will it deal with the significant risks that running a massive coal mine, rail line and port entail? Adani needs to let its partners know what it will do if it cannot find insurance."
Claudia Lang, Stop Adani campaign spokesperson said, "Insurers continue to drop Adani’s climate-wrecking coal project. We congratulate Apollo for being the 27th insurer, and 17th Lloyds of London insurer, to rule out Adani. Lloyd’s must follow their lead. It’s time for Lloyds to stop profiting from climate destruction by insuring dirty fossil fuel projects like Adani’s coal mine. Adani’s coal project is a reputational disaster for companies who associate with it.”
Inangaro Vakaafi, Pacific Climate Warriors Polynesian Council of Elders member, says: “We are pleased that another Lloyd’s of London insurer has dropped Adani’s dangerous coal project, and we demand that Lloyd’s of London acts immediately to protect the Pacific by by ruling out insurance for Adani’s coal project. Mining and burning coal from Adani’s coal mine wrecks our chances to protect our Pacific homelands from climate change impacts, especially rising sea levels which threaten us more and more every year. As Pacific people, we will continue to fight for our homes, our ways of life and our communities.”
Kuba Gogolewski, senior finance campaigner at the Polish organisation Development YES, Open pit mines NO addressed the rally, saying, "The U.K. Lloyd's insurance and reinsurance market is the biggest coal mining reinsurance market globally, it's the place of last resort for dirty projects seeking insurance - from Adani's polluting coal project to the Polish coal sector. Campaigners in Poland stand with those in Australia, India, Turkey and across the world in exposing Lloyd's lifeline to dirty fossil fuel projects."
Photos of the Lloyds #StopAdani Online Rally, 28 October, available here.
Photos of protest and giant postcard delivery at Lloyds of London HQ, 27 October, available here.
Lloyd’s of London is an insurance marketplace made up of around 100 insurance companies who together insure some of the riskiest and most controversial projects in the world. Insurance for the Adani Carmichael coal project is being arranged through Lloyd’s market.
If built, Adani’s Carmichael mine will, amongst a range of other serious negative impacts, add an estimated 4.6 billion tonnes of carbon pollution to our atmosphere over its lifetime.
Environmental and reputational risks associated with Adani’s coal project have led 25 global insurance companies to publicly rule out insurance cover for the coal project. The grassroots #StopAdani movement has secured commitments from 17 insurance companies operating in the Lloyd’s of London market not to insure Adani’s coal project. The #StopAdani campaign is calling on Lloyd’s to ban all insurance for new coal projects.
Lloyd’s has confirmed that some of its members started insuring Adani’s coal mine in 2019 but refuses to name the members involved. Lloyd’s also so far refuses to put in place a market wide policy excluding all of its members from insuring new coal mines, despite the climate science and the fact that most other leading insurers have such a policy in place.
Evidence that Lloyd’s member Aspen was involved came to light in June. When confronted, Aspen quickly responded that it understands the importance of environmental, social, and governance issues and therefore will not be renewing any insurance policies associated with the Adani Carmichael mine. Other Lloyd’s members including Allied World, Argo group and CNA Hardy have also recently made clear that they are not involved with Adani’s mine.
Exactly which Lloyd’s members are still insuring or plan to insure Adani is unclear and the subject of significant interest and concern. The Stop Adani campaign has been contacting Lloyd’s members one by one to rule them out and is now focused on a number of remaining members including Apollo, Arch, Brit, Hamilton Group, STARR, Lancashire, MAP and WR Berkley.