Adani loses another major insurer as Brit bows out of Carmichael Coal Project
UK Insurance company Brit, one of the largest Lloyd’s of London insurers, has committed to never insure Adani’s Carmichael Coal Project and to not renew insurance involving any other works directly associated with the project, most likely referring to the rail line. Reported in Reuters in the EU here.
“Brit does not, has never, and will not write any policies relating directly to the Adani Carmichael coal mine itself, Brit also confirms that it does not plan to renew any risks involving any other works directly associated with the project.”
Brit operates within the Lloyd’s of London insurance market, where Adani has been looking for insurance for the Carmichael coal project. Brit’s commitment is key to further cutting off Adani’s last shot at critical insurance which it needs to operate its coal mine and rail project.
Brit is the sixth insurance company to stop underwriting Adani’s coal project. Brit joins AXA XL, Liberty Mutual and HDI Talanx who were insuring the project before ruling out further involvement and Lloyd’s insurers Apollo and Aspen Re who committed to stop underwriting the project when active policies expire.
Insurers are rapidly retreating from Adani’s coal project, 31 insurance companies, including over 20 Lloyd’s insurers, have now refused coverage, raising doubts about Adani’s ability to secure critical insurance to operate a massive new coal project that goes against all climate science.
Pablo Brait, campaigner, Market Forces said: "Adani being dumped by another of its insurers is a major blow to the disastrous Carmichael coal project, but it makes perfect sense for Brit. 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 Hiscox must follow Brit's lead and also distance themselves."
"What Adani must explain to its investors, bankers and contractors is how exactly it plans to insure the Carmichael mine and rail line into the future. With more and more insurers turning their backs, how will it deal with the significant risks that running a massive coal mine, rail line and port entail? Adani must let its partners know what it will do if it cannot find insurance."
The Stop Adani movement and Insure Our Future are escalating pressure on global insurance giant Lloyd’s, particularly following the marketplace’s first ESG policy which it released in December 2020. Campaigners are calling on the few Lloyd’s syndicates that have so far remained silent on Adani, such as Arch, Ark, Hamilton, Hiscox, Lancashire and MS Amlin, to make clear they will not insure or renew insurance for this climate-wrecking project.
Lindsay Keenan, European Coordinator, Insure Our Future said: “Bruce Carnegie-Brown, Lloyd's of London Council Chairman, must now clarify and improve the market-wide coal policy, and make it crystal clear that no member of the Lloyd's market will issue new, or renew existing, insurance for the Adani Carmichael coal mine and associated works now, not in 2030. Until he does so, Lloyd’s global brand continues to be tarnished by its ongoing association with Adani’s ludicrous coal project, which has no place in the portfolio of any reputable insurance company.”
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Lloyd’s of London is an insurance marketplace in which 53 managing agents are responsible for around 93 syndicates who insure some of the riskiest and most controversial projects in the world. 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. In June 2020, Lloyd’s confirmed that some of its members are insuring Adani. Lloyd’s current marketwide policy allows its members to continue insurance of existing coal projects until 2030, despite the climate science. 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 Arch, Hamilton Group, Hiscox, MAP, MS Amlin, Lancashire, and WR Berkley.
About Insure Our Future:
The Insure Our Future (and originally, Unfriend Coal) network is a global coalition of NGO’s and social movements that is pressuring insurance companies to get out of the coal, oil and gas business and support the transition to clean energy.