Exposed: ‘Leaders and laggards’ in fossil fuel underwriting and investing

As indicated above, German group Allianz leads the pack in terms of ending fossil fuel insurance; French firms SCOR and AXA when it comes to fossil fuel divestment; while UK-headquartered Aviva emerges as the frontrunner in relation to other climate leadership.

Insure Our Future, meanwhile, lamented that while the insurance industry’s exit from coal continues rapidly, the same can’t be said about oil and gas. The lobby group highlighted that only AXA, Generali, and Suncorp (not part of the rankings) have adopted policies to deny coverage for many or all new oil and gas production projects.

“In 2020 Australia’s Suncorp was the first company to stop underwriting oil and gas production, committing to exit the industry by 2025,” reads Insure Our Future’s 30-page report seen by Insurance Business.

“It was joined this year by Generali, the only insurer in Europe to have ended cover for new production entirely, but not a major actor in the sector. Aviva and Swiss Re have both made limited commitments as well.”

According to Insure Our Future, no insurers in Asia and the US have indicated they will end insurance for oil and gas. AXA, meanwhile, recently adopted an oil and gas policy – the first major fossil fuel insurer said to have done so.

Insure Our Future global coordinator Peter Bosshard, who is in attendance at the ongoing 26th UN Climate Change Conference of the Parties in Glasgow, commented: “The insurance industry is abandoning climate leadership by continuing to underwrite new oil and gas projects. The scientific consensus is clear: we cannot avoid a climate catastrophe if we expand fossil fuel production.

“Insurance companies need to follow the science and stop insuring all new coal and oil and gas projects if they want to regain their credibility as climate leaders.”