Ten largest Lloyd’s insurers rule out underwriting Adani’s coal as Tokio Marine Kiln commits to not participate in ‘any future underwriting’
Adani’s Carmichael coal mine is facing another major setback as Lloyd’s of London insurance syndicate Tokio Marine Kiln has publicly committed to not participate in ‘any future underwriting’ of the controversial mine and rail project.
The commitment from Tokio Marine Kiln means that the ten largest insurance by capacity operating in the Lloyd’s of London market , where Adani has been getting insurance for its coal project, have all ruled out insuring the project.
Campaigners from the #StopAdani movement have been relentlessly pressuring insurers operating in the Lloyd’s of London market not to insure Adani’s coal project. Now 25 Lloyd’s insurers have ruled out insurance for the controversial project due to environmental concerns.
Tokio Marine Kiln issued the following statement to campaign group Market Forces:
TMK statement regarding the Adani Carmichael Mine Project
“We regularly review our portfolios and risk appetite in line with our broader organisational goals and can confirm that TMK would not participate in any future underwriting contracts on this project.”
The statement implies Tokio Marine Kiln has been involved in the underwriting of Adani’s coal project but will no longer participate after any existing policies expire. Losing the support of another active insurer is a major setback for the project. Adani is finding itself increasingly isolated in the insurance market due to the controversial nature of its coal project, the reputational damage companies that align themselves with the project endure and environmental concerns.
With the top ten Lloyd’s insurers refusing insurance for Adani, doubts are emerging about Adani’s ability to secure the ongoing insurance it will need to operate its proposed coal mine. Adani’s options for insurance within the Lloyd's market are rapidly narrowing and could close completely.
TMK’s statement comes on the same day as ERS Insurance, another Lloyd’s underwriter, also committed to never insure Adani Carmichael, providing Market Forces with the following statement:
“I am pleased to confirm that ERS will not be involved in any way with the Adani Carmichael Project.”
Pablo Brait, campaigner with Market Forces says:
"Tokio Marine Kiln's promise means all ten of the biggest Lloyd's insurers are now committed to not insuring the disastrous Adani Carmichael coal project. Significantly, the wording of TMK's statement implies it is an existing insurer, which, if true, would make this commitment a significant blow to Adani's controversial plans. Now Tokio Marine must urgently extend this commitment across its entire business and expand it to cover all fossil fuels. If it doesn't then it has not yet finished the job."
"With more and more insurers turning their backs, Adani has an obligation to explain to its shareholders and business partners how it will insure the risky Carmichael coal project for the decades it intends to run it."
"Adani Carmichael is a reputation destroyer for any company associated with it. The Lloyd's insurers still in Adani's corner, like Lancashire, Hamilton and Ark must join their competitors before they do irreparable damage to their reputations. The Carmichael 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."
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Tokio Marine Kiln joins several Lloyd’s of London insurers who 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 34 major insurance companies have publicly ruled out insuring Adani’s coal project, including 25 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 Ark, Arch, Markel, Hamilton Group, Lancashire, and WR Berkley.