Leading (re)insurer MS Amlin rules out insurance for Adani’s polluting coal project, says transition to a low carbon future needed
London based (re)insurer and major Lloyd’s of London syndicate MS Amlin has spoken out about the need to manage the long term risks of climate change and ruled out underwriting the controversial Adani Carmichael coal project in central Queensland, Australia.
MS Amlin is ranked in the top ten Lloyd’s insurers by capacity(1). Their commitment means nine out the ten biggest Lloyd’s of London insurers have publicly stated they will not insure Adani’s coal project, leaving Tokio Marine as the last of the top ten insurers yet to rule out support.
MS Amlin CEO Johan Slabbert made a comment on LinkedIn in response to a post by a campaigner with Australian investor action group Market Forces.
Mr Slabbert commented:
“We can confirm that we have no involvement in and do not intend to participate in the underwriting of the Adani Carmichael mining project. As a leading (re)insurer we recognise our responsibility and the role we have to play alongside our partners and clients in managing the long term risks of climate change and transitioning together towards a low carbon future.”
Adani has been going through the Lloyd’s of London insurance market to insure the construction phase of its coal project. With most Lloyd’s insurers now blacklisting the project due to environmental concerns, doubts are emerging about Adani’s ability to secure the ongoing insurance it will need to operate as Adani’s options within the Lloyd's market rapidly narrow and could close completely.
Pablo Brait, campaigner with Market Forces says:
"MS Amlin's move means nine of the ten biggest Lloyd's insurers are now committed to not insuring the disastrous Adani Carmichael coal project. The hold-out is Tokio Marine, which together with a number of smaller insurers like Ark and Lancashire are still in Adani's corner. Insurers all over the world are having their profits smashed by fires, floods and storms made worse by global warming. For Lloyd's insurers to still be open to insuring a massive new thermal coal mine, which will only fuel more costly extreme weather, is both morally reprehensible and financially irresponsible."
"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."
Several Lloyd’s of London insurers have publicly committed to not renew existing policies when they expire, such as Liberty Mutual, AXA XL and Aspen Re and Apollo, in February Brit committed to not renewing a policy it held for Adani’s rail line.
In total 33 major insurance companies have publicly ruled out insuring Adani’s coal project, including 24 Lloyd’s of London insurance syndicates.
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 Tokio Marine, Ark, Arch, Markel, Hamilton Group, Lancashire, and WR Berkley.
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(1) AON, Lloyd’s Update, Redefining the Future September 2019, P 14 http://thoughtleadership.aon.com/Documents/20190904-lloyds-update.pdf