Swiss Re, Zurich Insurance Group Among Insurers Dropping, Refusing To Cover NS2, Transmountain, ANWR

[hatrack]

Both Zurich Insurance Group and AXIS Captial recently announced their intentions to cease insurance coverage for controversial oil and gas projects as the insurance industry continues on a rapid trend towards climate-friendly policies.

In a letter to the Gwich’in Steering Committee, AXIS declared that it would not provide coverage or investment support for projects related to exploration, drilling, or oil or gas production in the Arctic National Wildlife Refuge, becoming the first North American insurer to make such a commitment. AXIS also became the first U.S. insurer to restrict coverage for coal and tar sands projects in Oct. 2019.

According to Bloomberg, Zurich will stop providing insurance services to the Nord Stream 2 (NS2) gas pipeline, which would transport natural gas from Russia to Germany. The Swiss insurer is the third insurance company to cut ties with the NS2. Most recently, the European Parliament demanded construction to stop on the NS2 on Jan. 21 in response to Russia arresting Kremlin critic Alexei Navalny. The NS2 also faced U.S. sanctions in 2019, with further sanctions expected with the new Biden administration.

Insurers are increasingly recognizing the financial and reputational risks of underwriting fossil fuel projects. According to The Sunrise Project, a total of 26 global insurance companies have ended or limited coverage for coal projects, with many also moving to restrict services in the oil and gas sectors. AXA XL and Swiss Re pledged not to support projects contributing to Arctic Refuge destruction last year. In July 2020, German insurer Talanx dropped its coverage of Canada’s controversial Trans Mountain pipeline, which has a history of causing major environmental and public health hazards.

EDIT

https://www.propertycasualty360.com/2021/01/25/zurich-axis-pull-coverage-for-controversial-oil-and-gas-projects/?slreturn=20210031150027

[Phoenix61]

1. I think it had more to do with a unacceptable

risk levels. As the climate warms and permafrost thaws those ventures become more and more risky. Why would they insure something they know is eventually going to fail in a huge way?

[hatrack]

2. Oh, I think that's the key consideration for them . . .

But hey, close enough.