Home > World’s largest insurance broker cuts ties with Adani Carmichael coal mine
Media Release

World’s largest insurance broker cuts ties with Adani Carmichael coal mine

23 June 2022

23 June 2022, for immediate release

The Adani Carmichael coal mine’s long-standing insurance broker, Marsh, has confirmed it has ended its commercial relationship.

This news, published in InsuranceERM, comes two weeks after the #StopAdani campaign received an anonymous, insider tip-off that on 29 May 2022, Lockton was appointed to be the new insurance broker for Adani Australia, including the controversial Carmichael thermal coal mine and rail line. The tip-off pointed to a relationship between Adani Australia’s Group Insurance Manager, Brad Green, and Lockton. According to his LinkedIn profile, Mr Green is a former Lockton employee.

Based on the tip-off, Market Forces emailed Lockton’s Australia and UK offices on Wednesday 8 June to give the company the opportunity to refute the allegations. A phone call the day after between Market Forces campaigner Pablo Brait and Lockton Australia’s COO Andrew Wait confirmed the email had been received. No reply has been forthcoming from Lockton, and a campaign has been launched to convince Lockton to commit to not work for Adani’s disastrous coal project – whether it is currently involved or not.

Pablo Brait, campaigner at Market Forces said:

“As the world faces ever-worsening heatwaves, floods and fires, it is beyond belief that Lockton won’t rule out backing a massive new coal mine. Already, 112 major companies have publicly ruled out work for Carmichael, due to its climate-wrecking impact and the risk to corporate reputations of being associated.

“If the tip-off is right, the decision-makers at Lockton have decided that they have little interest in running an ethical company or maintaining a positive reputation.

“Considering Carmichael’s ongoing insurance difficulties, any work Lockton does for Adani could prove decisive in enabling the mine to continue to operate and increase production. 

“We are reaching out to Lockton’s stakeholders, including its staff and clients, to ask them to help us convince the insurance broker to do the right thing and join the companies that have ruled out work for Carmichael.”

Adani has faced difficulties in securing insurance. Forty-four of the world’s biggest insurance companies are refusing to provide coverage for Carmichael. When Adani turned to the Lloyd’s of London insurance market, outreach by Market Forces and others in the #StopAdani Alliance succeeded in convincing 28 Lloyd’s syndicates, including at least five existing Carmichael insurers and the 10 biggest market players to commit to providing no further insurance.

In May 2021, Carmichael rail line construction contractor BMD admitted it had searched the world for insurance and had been unable to find essential coverage specifically for its work for Carmichael. Adani had to take on its risk.

In further indication of Adani’s insurance problems, the head of Adani Australia, Lucas Dow, was in the media in the lead up to this year’s Federal Election, asking for the Australian taxpayer to prop-up a coal miner self-insurance scheme.