4 February 2022
Earlier this week, UK and Bermuda-based Convex Insurance published a statement confirming it “will not insure the construction or operation of any new thermal coal mine and/or its dedicated infrastructure”. This commitment means Convex has ruled itself out of ever insuring the disastrous Adani Carmichael thermal coal mine, its rail line, and port. Convex acknowledged in its statement that the lack of clarity regarding its position on the Adani coal project was a reputational threat for it and its partners.
Convex becomes the 43rd insurer and 108th major company to have publicly rejected Carmichael and it is clear proof that the campaign to cut off Adani’s access to insurance for its climate-wrecking coal mine is continuing to have an impact.
We first wrote to Convex Insurance in late 2020, asking it to rule out insuring the Adani Carmichael mine in Australia. Since then, #StopAdani supporters in the UK, Australia and Bermuda held protests outside its offices and insurance industry events. This pressure succeeded in convincing Convex to take a position on all new thermal coal mining, becoming the latest in a growing list of insurers which are refusing to support this destructive activity.
With 43 insurers now rejecting Adani, all eyes are on the laggards, including Helvetia Group and Lloyd’s of London. In response to being named in the media reporting on the Convex decision, Helvetia told Market Forces that it is not currently involved with the Adani Carmichael project. While this is a good first step, Helvetia must urgently clarify if it is prepared to insure Carmichael in the future. Lloyd’s has been a long-running supporter of the Carmichael mine, with its insurance coming from the Lloyd’s market since 2019. However, most of the relevant Lloyd’s market insurers have now made a commitment to not provide or renew coverage of Carmichael. In order to salvage its tattered reputation, Lloyd’s must clarify the status of this coal mine in its marketplace.
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