Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • December 2018
12

World's largest insurers refuse to support 'test case' Australian coal mine

Open-access content Thursday 20th December 2018

Ten of the world’s largest insurers will not support a proposed Australian coal mine described by NGOs as a “test case” that will show who is “interested in profiting from climate chaos”.

2


It is estimated that the Adani Group's controversial Carmichael coal mine would produce greenhouse gas emissions equivalent to what the whole of Australia generates over eight years.

All of the country's major banks have publicly rejected any involvement in the $1.5bn (£1.2bn) project, with Adani last month admitting it would be forced to self-finance the mine.

Allianz, AXA, Generali, and Zurich are among the insurance firms now also refusing to support the project, along with the first major US insurer to take action on coal - FM Global.

"The coal mine demonstrates whether insurers care about managing climate risk or are more interested in profiting from climate chaos," Unfriend Coal campaign coordinator, Lucie Pinson, said.

"Companies unwilling to rule out insuring this disastrous project are threatening the future of our climate, the unique environment of the Barrier Reef, and the wellbeing of local people."

The Intergovernmental Panel on Climate Change believes at least 59% of all coal power must be phased out by 2030 to meet the Paris Agreement's target of limiting global warming to 1.5°C.

It is thought that the Carmichael coal mine would emit 4.6 billion tonnes of CO2 over its approved lifetime, but it cannot be built or operated without insurance coverage.

In response, 73 organisations representing more than 76 million people earlier this month sent an open letter to 30 leading insurers calling on them to rule out support for the project.

While 10 companies have agreed to not insure the mine, 16 others with no policy on coal have yet to respond, including AIG, Berkshire Hathaway, Liberty Mutual and Chubb.

Jason Opeña Disterhoft, campaigner at Rainforest Action Network, said: "Limiting global warming to 1.5°C is incompatible with expansion of coal via carbon bombs like Adani's Carmichael mine.

"FM Global not supporting the mine makes it the first US insurer to publicly commit to not insure any coal project - it's time for AIG, Berkshire Hathaway and their US peers to follow suit."


Sign up to our free newsletter here and receive a weekly roundup of news concerning the actuarial profession

This article appeared in our December 2018 issue of The Actuary.
Click here to view this issue
Filed in:
12

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Syndicate - Senior Actuarial Analyst - Reserving

London (Central)
£40000 - £65000 per annum + benefits
Reference
121016

Senior Actuarial Analyst - Commercial Lines - Reserving

London (Central)
£40000 - £60000 per annum + benefits
Reference
121015

Pricing Actuarial Analyst - Lloyd's

London (Central)
£40000 - £60000 per annum + benefits
Reference
121014
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2021 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200