Wednesday 16 December 2020
In an email to Market Forces (available upon request, received Friday 11 December) specialty re/insurer Fidelis has confirmed that its recently published Environment and Sustainability Statement rules it out of underwriting the Adani Carmichael coal project. This makes it the 28th insurer to publicly make this commitment.
“We are committed to driving forward anti-coal initiatives, we look to shape change by not offering insurance to companies that extract coal or generate energy using coal.” Fidelis says in its Statement.
In the email to Market Forces, Fidelis CEO and Chairman Richard Brindle adds, “I can confirm that we have declined to offer capacity for any of the Adani construction and operation risks, and have also declined to support non-payment insurance for infrastructure financing for the project. We will continue to be vigilant in ensuring that we do not provide insurance for any coal projects.”
Fidelis’ move removes another possible source of insurance for the controversial Adani thermal coal mine and rail project. It puts the focus back on the Lloyd’s of London market, where Adani is currently sourcing its insurance for Carmichael. Seventeen companies running Lloyd’s syndicates have now ruled out insuring Adani, including two current insurers (Aspen and Apollo). The remaining syndicates are coming under increasing pressure to refuse to underwrite the new thermal coal mine.
“Every insurance company in the world should be running a mile from the climate and reputation-destroying Adani Carmichael coal project. In fact, twenty-eight of them already have. The project will help open up a massive new thermal coal basin in the midst of the climate crisis, it is being contested by Traditional Owners who have not given their consent for the mine, it will destroy endangered species habitat and drain water supplies. Lloyd’s remains one of the few places still willing to insure new thermal coal projects, and that needs to change”, said Pablo Brait, campaigner at Market Forces.
“At a time when insurance company profits are being hit by global warming-fueled extreme weather, no insurer can claim to be responsible or ethical if it is open to making the problem worse by insuring new thermal coal projects. The remaining Lloyd’s syndicates yet to take a position on Adani Carmichael, such as Brit, Convex and Hiscox, must urgently join their peers and rule it out before their reputations are irreparably damaged.” Mr Brait concluded.