Environmentalists have welcomed a new move by one of the world’s biggest insurance groups to toughen its stance over the insurance of firms which derive income from coal.
German insurer, Allianz has updated its coal insurance restrictions with a new policy, released on last week. In addition to the underwriter’s previous exclusion of insurance for coal projects (specifically new coal-fired power plants and mines), Allianz will now no longer offer property and casualty insurance for companies whose business model is largely based on coal and which do not have a clear coal exit path from 2023.
According to the statement, the policy applies to energy suppliers that generate 25% or more of their electricity from coal and have a coal-fired power generation capacity of 5GW or more.
In the coal mining sector, the policy applies to companies that generate 25% or more of their sales from energy-based coal or produce at least 50 million tons of coal annually.
Regine Richter, energy campaigner at German environmental group urgewald welcomed the announcement.
“The move by Allianz once again proves that coal as a business model has no future,” she said. “Almost two years ago, Allianz excluded coal project insurance for the first time. However, companies with a massive coal share were able to continue to receive insurance from Allianz. Now Allianz is closing this big gap. The group once again shows that it wants to act in an exemplary manner on the subject of coal.”