Axis Capital to exit coal, oil sands insurance business

first_img FacebookTwitterLinkedInEmailPrint分享Canadian Underwriter:Starting next year, Axis Capital Holdings Ltd. will stop writing new insurance and facultative reinsurance for oil sands extraction and pipeline projects.Pembroke, Bermuda-based Axis writes commercial specialty and reinsurance. Its new thermal coal and oil sands underwriting and investment policy takes effect Jan. 1, Axis Capital said Wednesday in a release.“AXIS will not provide new insurance or facultative reinsurance for the construction of new thermal coal plants or mines and their dedicated infrastructure or oil sands extraction and pipeline projects and their dedicated infrastructure; or to companies that generate 30% or more of their revenues from thermal coal mining, generate 30% or more of their power from thermal coal, or hold more than 20% of their reserves in oil sands,” the insurer said. “Renewals will be considered on a case-by-case basis until Jan. 1, 2023. Exceptions to this policy may be considered on a limited basis until Jan. 1, 2025 in countries where sufficient access to alternative energy sources is not available.”The announcement comes less than a week after Canadian Underwriter obtained a memo that purports to be a “CrossLine Alert,” issued for internal users only, from Munich Re. In that memo – which Munich Re has neither confirmed nor denied to be authentic – the insurer says facultative reinsurance covers and primary insurance business, including renewals, will no longer be signed for the planning, financing, construction of new oil sand sites. “We believe insurers have an important role to play in mitigating climate risk and transitioning to a low-carbon economy,” Axis Capital CEO Albert Benmichol stated Wednesday in a release.As a result of global warming, Canada will have more frequent heat waves, droughts and precipitation events, Insurance Bureau of Canada CEO Don Forgeron said Apr. 25 at IBC’s annual general meeting.More: Another insurer to withdraw coverage from oil sands Axis Capital to exit coal, oil sands insurance businesslast_img

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