Home / Daily / Reinsurance giants rule out coal mutual involvement: climate activists
7 October 2021
Swiss Re and Munich Re have confirmed they will not have anything to do with a proposed mutual for the coal mining industry, according to climate groups who have been waging an intensive global campaign urging the industry against providing crucial insurance to the Adani mine in Queensland.
insuranceNEWS.com.au has reached out to the two reinsurers for comment.
The #StopAdani campaign says in a statement today that the two reinsurance giants have provided responses to the Insure our Future campaign ruling out their participation in a proposed mutual scheme.
“The reinsurers say their climate and coal policies would rule out their involvement in the scheme,” the statement from #StopAdani said.
“The coal industry mutual fund has been touted as a potential solution to the insurance challenges faced by the Australian coal industry, after insurers increasingly refuse coverage because of concerns about global warming and climate risk."
The latest push from the climate campaigners comes as Resources Minister Keith Pitt says a government-backed $250 billion lending facility should be made available to the coal industry as a condition for supporting a net zero carbon emissions target for 2050.
Mr Pitt is from the National Party - the junior partner in the ruling Coalition Government – whose support is vital as Prime Minister Scott Morrison faces growing pressure from global leaders to act on the climate threat.
“No matter what happens, we need to find a way to fund the resources sector and provide insurance,” Mr Pitt told the Australian Financial Review.
The Adani coal mine and its third-party services providers have struggled to secure vital insurance as more from the industry have declared they will not provide cover in the future or renew policies when they have expired.
“As Adani Group's insurance options for the disastrous Carmichael coal project continue to shrink, it needs to come clean to its investors, bankers and contractors on how exactly it plans to insure its activities into the future,” Market Forces Campaigner Pablo Brait told insuranceNEWS.com.au.
“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.”
However Bravus Mining and Resources, which owns the mine, says it has the requisite insurance in place for the Carmichael mine and rail project.
“The project is nearing completion and Carmichael coal is on track for export this calendar year,” a spokesman told insuranceNEWS.com.au today.