In Battle Of Climate Activists Vs. Insurers, Who Will Be Left Standing?
Thursday, March 12th, 2020 Risk ManagementFrom coal mines to fossil fuels and oil sands, the insurance industry is facing increasing pressure from activists, the public, and its own employees to move away from industries whose activities are purportedly causing environmental harm.
In fact, many major players have already taken steps to change their policies when it comes to controversial industries.
In October 2019, AXIS Capital Holdings Limited announced a new policy addressing underwriting and investments related to thermal coal and oil sands.
With the new policy, as of January 01, AXIS is not providing new insurance or facultative reinsurance for the construction of new thermal coal plants or mines, oil-sands extraction and pipeline projects, and their dedicated infrastructure.
AXIS will also not provide new insurance or facultative reinsurance to companies that generate 30% or more of their revenue from thermal coal mining, generate 30% or more of their power from thermal coal, or hold more than 20% of their reserves in oil sands.
