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Lloyd's market to quit fossil fuel insurance by 2030

Veronique Lafon-Vinais's picture
Associate Professor of Business Education HKUST

I am a seasoned financial market professional with over 20 years of banking and capital markets experience and a second career in academia for the past 15 years. I worked in all the major...

  • Member since 2020
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  • Dec 29, 2020
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Last week, the Lloyd's of London, the world's oldest and biggest insurance market, under pressure from stakeholders, finally joined the climate change movement and adopted a new policy to "stop insurance cover for coal, oil sands and Arctic energy projects by January 20222 and to pull out of the business altogether by 2030".  See below the article in The Guardian.

This means that one year from now energy companies trying to get new projects going in coal, oil sands and the Artic will have to look elsewhere for insurance - knowing that most major global insurers have already stopped providing coverage for such projects. For existing projects, coverage will be phased out progressively.

This is extremely significant - boards have to stand up and take notice. There is no going back. Climate Change and energy transition need to be at the top of the agenda.

 

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Matt Chester's picture
Matt Chester on Dec 29, 2020

This means that one year from now energy companies trying to get new projects going in coal, oil sands and the Artic will have to look elsewhere for insurance - knowing that most major global insurers have already stopped providing coverage for such projects.

So do you expect this is another domino that will lead inevitably towards more of the same, or will there perhaps be some other company that sees an opportunity and steps up to fill that void? 

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