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Study finds global insurers pulling back sharply on fossil fuel projects

October 19, 2022

South China Morning Post ($):

Chinese insurers were among the worst performers in a global study examining the industry’s progress in phasing out support for fossil fuel. Ping An Insurance, China’s largest insurer, ranked 22nd among 30 companies, while People’s Insurance Company of China (PICC) and China Export & Credit Insurance Corp rounded off the bottom of the table.

The report published by Insure Our Future, a global NGO coalition, focuses on the 30 most important insurers in the power sector worldwide, ranking them according to their policies on coal, oil and gas insurance, as well as their overall approach to exiting fossil fuel.

Insurance companies play a crucial part in reducing fossil fuel production and limiting global warming to the key threshold of 1.5 degrees Celsius. Without insurance, most new fossil fuel projects cannot proceed, and existing ones must close, according to the report.

Coal has become increasingly uninsurable outside China, and most large insurers around the globe have backed away from insuring new coal projects, according to the report. A total of 41 insurers have withdrawn or reduced insurance cover for coal-based industries since the first scorecard’s publication in 2017, up from 35 last year and 23 the year before.

[Martin Choi]

More: Chinese insurers rank at the bottom of industry’s progress in phasing out support for fossil fuel

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