Home Finance Insurer Allianz toughens oil & gas policy to help meet climate goal

Insurer Allianz toughens oil & gas policy to help meet climate goal

by Enochadmin
  • To cease insuring new oil and gasoline tasks
  • Comes into power from January 2023
  • NGO Insure our Future says coverage ‘raises the bar’

LONDON, April 29 (Reuters) – Europe’s greatest insurer Allianz (ALVG.DE) plans to take a more durable line on insuring the oil and gasoline trade as a part of efforts to align its underwriting insurance policies with the world’s local weather purpose, the corporate mentioned on Friday.

The transfer is the most recent by a significant insurer to curtail insurance coverage to the power sector, a number one driver of greenhouse gasoline emissions, and comes as scientists warn of a quickly closing window to restrict the worst results of worldwide warming.

It follows a report from the Worldwide Power Company final yr which mentioned no extra funding was wanted in new oil and gasoline fields if the goal was to be met. learn extra

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With strain rising to speed up company efforts to rein in emissions, Allianz mentioned from the beginning of 2023, it could now not situation new property and casualty insurance coverage to fund new oil and gasoline tasks, and cease renewing current contracts from July 2023.

The brand new exclusions would cowl exploration and improvement of latest oil and gasoline fields; building of latest mid-stream oil infrastructure; building of latest oil energy crops; and people linked to tasks within the Arctic, Antarctic or coal-bed methane, extra-heavy oil and oil sands, in addition to ultra-deep sea fields.

“With these new tips, Allianz is strengthening its promise to contribute to an orderly decarbonisation of the financial system,” mentioned Allianz board member Günther Thallinger.

As of January 2025, Allianz mentioned it could solely insure oil and gasoline corporations which have been on a science-based pathway to net-zero emissions by 2050, together with the key oil corporations answerable for the lion’s share of emissions.

Beginning on the similar time, Allianz additionally mentioned it could present no insurance coverage, facultative reinsurance, or reinsurance for a single danger or outlined package deal of dangers, or funding to corporations which get greater than 10% of their income from oil sands, after beforehand setting the brink at 20%.

NGO Insure our Future mentioned it welcomed the transfer by Allianz, “which raises the bar for the insurance coverage trade” and known as on others within the sector to observe go well with.

Allianz is the tenth main insurance coverage firm to undertake oil and gasoline restrictions, it mentioned, and there was “actual momentum now for all insurance coverage corporations to undertake oil and gasoline insurance policies that align with the local weather science.”

Amongst others to have tightened their insurance policies in current months are Swiss Re (SRENH.S), the world’s second-biggest reinsurer, which mentioned it March it could now not insure most new oil and gasoline tasks. learn extra

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Reporting by Simon Jessop. Modifying by Jane Merriman

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