Insurers drop coal as second major insurer in one week refuses coverage for Adani.
A second major insurer has ruled out underwriting Adani’s Carmichael coal project in central Queensland in the space of a week. UK insurer Hiscox has confirmed it will not insure the coal project and has ‘no interest in coal mines’. Hiscox is the 32nd insurance company to rule out insurance for the controversial coal mine and rail project.
Responding to a query about Hiscox's structured exit from coal that was announced yesterday as part of their full year results, Hiscox staff wrote to climate campaigners stating:
“We have no interest in coal mines such as Adani and this policy makes that clear.”
A copy of the full statement is available on request.
Hiscox’s commitment comes one week after major UK insurer Brit said it would never insure the coal mine and would not renew risks involving any other works directly associated with the project.
The two insurer’s commitments deepen existing doubts about Adani’s ability to secure critical insurance it requires to operate the Carmichael coal project. As the insurance industry rapidly backs away from polluting coal projects, Adani is running out of options to secure ongoing insurance policies it needs to operate its climate-wrecking coal project.
Insurance companies are backing away from Adani’s coal faster than the Stop Adani movement can keep up. A National Day of Action to pressure Brit not to insure Adani was planned for March 17th, but was forced to change after Brit announced it would not support Adani. The planned National Day of Action pivoted pressure on Hiscox, but will now change again in light of Hiscox’s commitment.
Pablo Brait, campaigner, 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."
"What Adani must explain to its investors, bankers and contractors is how exactly it plans to insure the Carmichael mine and rail line. 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 must let its partners know what it will do if it cannot find insurance."
Both Brit and Hiscox operate in the Lloyd’s of London insurance market which has come under intense pressure from climate groups and the Stop Adani movement for their role in underwriting fossil fuel projects. Under pressure from the people-powered Stop Adani movement last December, Lloyd’s announced they would end coverage for the new coal project starting in January 2022. The Stop Adani movement is pressuring all Lloyd’s of London insurers to give immediate commitments to rule out insurance for Adani ahead of the 2022 deadline Lloyd’s has set.
Hiscox is the 32nd insurer to rule out underwriting Adani’s Carmichael coal project and the 94th company to commit to having no involvement in the project.
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