In keeping with this 12 months’s scorecard, European insurers Allianz, AXA and Axis Capital rank greatest for his or her coal exit insurance policies, whereas Aviva, Hannover Re and Munich Re are on the prime for oil and gasoline exclusions.
IOF has famous that on the backside of the rankings are the insurers which have but to undertake any restrictions on cowl for coal, oil, or gasoline tasks. These insurers notably embody the US-based Berkshire Hathaway and Starr, in addition to the Bermuda-based Everest Re. And whereas it was discovered that the American insurers Liberty Mutual and Chubb adopted some piecemeal restrictions on coal in 2019, these restrictions haven’t been up to date since, and the 2 proceed to actively insure the enlargement of the oil and gasoline industries.
The most important North American fossil gasoline insurers had been typically discovered to be lagging behind their European counterparts, IOF has famous. Not one of the US-based insurers have a coverage on oil and gasoline enlargement, regardless of having the biggest market share of oil and gasoline underwriting. It was famous, nonetheless, that amongst North American insurers, solely the Bermuda-based Fidelis has a coverage proscribing the underwriting of oil and gasoline tasks and/or firms.
When it comes to particular insurers and their latest sustainability insurance policies, it was discovered that AIG’s first-ever local weather dedication covers its underwriting of coal, tar sands, and drilling within the Arctic. Citing a report from WTW’s Market Assessment, IOF mentioned that AIG’s latest coverage to maneuver away from coal could have a “substantive” local weather influence.
Learn extra: AIG commits to new local weather insurance policies – however will they stroll the speak?
In the meantime, Vacationers’ final sustainability dedication solely covers coal and tar sands. IOF has commented that as one of many prime oil and gasoline insurers within the US, Vacationers must do extra to handle its underwriting of latest fossil gasoline tasks.
Learn extra: Vacationers proclaims new local weather coverage – environmental teams react
“Insurance coverage is the Achilles heel of the fossil gasoline trade and has the facility to speed up the transition to scrub power,” mentioned Peter Bosshard, world coordinator of the Insure Our Future marketing campaign and fundamental writer of the IOF Scorecard. “All insurance coverage firms should instantly align their companies with the 1.5oC aim of the Paris Settlement and stop insuring new coal, oil and gasoline tasks.”
“Insurance coverage firms can’t be anticipated to soak up the rising prices of local weather disasters alone, however it’s unacceptable that they’re abandoning climate-affected communities whereas persevering with to gasoline the local weather emergency by underwriting the enlargement of fossil gasoline manufacturing,” mentioned Rainforest Motion Community senior campaigner Elana Sulakshana.
IOF additionally talked about that there are limits to voluntary commitments. It identified that the UN’s Race to Zero marketing campaign in June mandated that members of internet zero alliances “should part down and out all unabated fossil fuels,” however the lack of adequate voluntary motion by the trade may be an indication that there must be better regulation.
Learn extra: Main insurers arrange Web-Zero Insurance coverage Alliance
“Fossil gasoline tasks that do not get insured, do not get constructed. Insurers ought to take the fifty-plus billion {dollars} of insured losses from Hurricane Ian as a clarion name for emergency local weather motion to forestall a way forward for ever extra harmful disasters,” mentioned IOF senior strategist Risalat Khan.