Insurance Post: Climate change is coming to the fore
June 26, 2020
The biggest future challenge the entire planet faces is climate change and the insurance industry is going to find itself on the frontline in the many coming battles to eliminate dependence on fossil fuels. As we escape from lockdown and the shadow of the pandemic recedes, the insurance sector is going to find reinvigorated and influential campaign groups, supra-national organisations and governmental bodies lining up to demand action from it. There will be no hiding place.
The re-launch of Unfriend Coal as Insure Our Future will ensure those insurers and brokers that fail to match words with actions (or cannot even be bothered with a few words of support for action on climate change) will be named and shamed. Its latest report, already being eagerly read by policymakers around the world will make uncomfortable reading for AIG, Travelers and Tokio Marine. Its condemnation of Liberty Mutual, HDI Global, XL Australia and Aspen Re for providing cover for the controversial Adani coal mine in Australia and Marsh for acting as broker following leaks in the Sydney Morning Herald should make those boardrooms sit up and think hard about how that might play out.
Commercial and personal clients will judge their future business partners by their commitment to protect the planet. You do not want to be on the wrong list.
This piece originally formed part of a column in Insurance Post, written by David Worsfold. You can read the full piece here.
This comes as last week NGOs supporting the Insure Our Future campaign called on insurers to end all support for new oil and gas projects in order to meet international climate targets.
They also released research revealing that four of the 15 biggest oil and gas insurers are companies that have publicly backed the Paris Agreement target of limiting global warming to 1.5°C, while seven have already limited support for fossil fuels by restricting insurance for coal.