Brit Insurance has become the latest underwriter to distance itself from a controversial Australian mining project.
The underwriter has written to climate action group Insure Our Future to say it will not insure the Carmichael Coal Project, or renew insurance involving any associated aspects of the project.
In the email Brit said it had never and will not write any policies relating directly to the Adani Carmichael coal mine itself. In addition, Brit also confirms that it does not plan to renew any risks involving any other associated with the project.”
The email means that 31 insurance companies, including 20 Lloyd’s insurers, have now refused coverage, raising doubts about Adani’s ability to secure critical insurance to operate a massive new coal project that goes against all climate science.
Pablo Brait, Campaigner, Market Forces explained: “Adani being dumped by another of its insurers is a major blow to the disastrous Carmichael coal project, but it makes perfect sense for Brit. Every insurance company on Earth should be running a mile from this climate-wrecking mine.
“The project will help open up a massive new thermal coal basin in the midst of a climate crisis, it is being contested by Traditional Owners who have not given their consent, it is destroying endangered species habitat and draining water supplies.”
“Other Lloyd’s insurers, including MS Amlin, Lancashire and Hiscox must follow Brit’s lead and also distance themselves.”
Insure Our Future added Brit joins AXA XL, Liberty Mutual and HDI Talanx who were insuring the project before ruling out further involvement, and Lloyd’s insurers Apollo and Aspen Re who committed to stop underwriting the project when active policies expire.
“What Adani must explain to its investors, bankers and contractors is how exactly it plans to insure the Carmichael mine and rail line into the future. With more and more insurers turning their backs, how will it deal with the significant risks that running a massive coal mine, rail line and port entail? Adani must let its partners know what it will do if it cannot find insurance,” adds Mr Brait.
The Stop Adani movement and Insure Our Future is now escalating its pressure on Lloyd’s, particularly following the marketplace’s first ESG policy which it released in December 2020. Campaigners are calling on the few Lloyd’s syndicates that have so far remained silent on Adani, such as Arch, Ark, Hamilton, Hiscox, Lancashire and MS Amlin, to make clear they will not insure or renew insurance for the project.
Lindsay Keenan, European Coordinator, Insure Our Future added: “Bruce Carnegie-Brown, Lloyd’s of London Council Chairman, must now clarify and improve the market-wide coal policy, and make it crystal clear that no member of the Lloyd’s market will issue new, or renew existing, insurance for the Adani Carmichael coal mine and associated works now, not in 2030. Until he does so, Lloyd’s global brand continues to be tarnished by its ongoing association with Adani’s ludicrous coal project, which has no place in the portfolio of any reputable insurance company.”