As climate activists are rising up around the world a growing number of non-violent direct actions are targeting the remaining coal insurers. Dressed up as canaries in a coal mine, Extinction Rebels from Wales and Bristol blockaded the Walkie Talkie building, the home of Liberty Mutual, the Markel Corporation and Tokio Marine Kiln in London, on October 14.

On October 15 Australia’s Galilee Blockade along with an Extinction Rebellion choir occupied the Lloyd’s office in Sydney, calling on the Corporation to rule out insurance for the Adani Group’s Carmichael coal mine (see below). On the same day, Greenpeace Italy introduced art works depicting coal projects at an exhibition sponsored by Generali, which continues to insure coal companies in Eastern Europe, in Rome. To be followed!

In early October AXIS Capital and Canopius withdrew their bids for insuring the railway line of the Adani Group’s proposed Carmichael coal mine in Australia, only days after being put on notice by campaign group Market Forces. Their withdrawal brings the number of insurers and financial institutions which have ruled out supporting the Adani project in some way to 16 and 59, respectively.

With AXIS Capital and Canopius out of the Carmichael project, all eyes are now on AIG and Lloyd’s. AIG is one of the biggest remaining coal insurers, has covered Adani Australia and the site works at the Carmichael mine in the past, and has refused to rule out future support for the project. 

As the example of AXIS and Canopius suggests, the Adani Group and its broker, Marsh, may be increasingly looking to the specialty insurers on the Lloyd’s market for cover. Last month Lloyd’s CEO commented on the question of coal insurance as follows: “We expect every syndicate to have its own guidelines on corporate social responsibility in the lines of business they write. Only in exceptional circumstances will we direct the market not to write a certain kind of business.”

It is incomprehensible that the Lloyd’s CEO doesn’t appear to consider the risk of an unmanageable climate breakdown, which projects like the Carmichael mine are fueling, as an exceptional circumstance. The Corporation will likely come under growing public pressure in the future.

On October 8, two year after California’s disastrous Tubbs fire, Rainforest Action Network launched a campaign calling on Liberty Mutual to end insuring coal and tar sands in cooperation with the Insure Our Future and Unfriend Coal campaigns. Liberty Mutual is one of the world’s top coal insurers according to Finaccord and has invested more than $6.6 billion in fossil fuel companies, including $1.5 billion in thermal coal.

As the campaign was launched a California homeowner reported that Liberty Mutual had canceled her policy within two weeks of the Tubbs fire. The homeowner commented: “Liberty Mutual is abandoning its long-time clients after ever increasing climate-related disasters while simultaneously insuring companies in the fossil fuel industry that drive these crises. This company’s hypocrisy is shocking.”

After more than 15 futile requests for a dialogue, RAN plans to target the insurer and its public brand with an escalating series of creative protests.

A growing number of insurers are phasing out cover not just for coal projects but also for companies depending on coal for more than 30% of their business. While this is welcome some of them will only drop coal companies after an overly long transition period: from 2022 in the case of Chubb, 2023 in the case of AXIS Capital, and 2030 in the case of QBE.

Allowing customers a transition period to meet the 30% threshold can be a meaningful approach but the period should not be longer than two years, as demonstrated by Zurich’s coal exit policy.