European Insurers and US Coal: A Hidden Partnership

A recent report by Insure Our Future has exposed a disconcerting truth: major European insurers are silently fueling nearly one-third of US coal production, despite their avowed commitments to achieving net-zero emissions. In 2022, these insurers, including heavyweights like Lloyd’s of London, Zurich, and Swiss Re, featured among the top ten underwriters for 25 major US mines, contributing to over 60% of the country’s coal production.

The numbers are stark. These European Insurers are responsible for underwriting 13 mines, which collectively account for a staggering 30.7% of the national output. AIG tops the list, insuring seven mines that contribute 28.1% of the national output. Lloyd’s of London, not far behind, underwrites 10 mines, constituting 22.8% of the output.

Coal, a notorious contributor to CO2 emissions, remains a colossal problem. The US ranks as the fourth-largest coal producer globally, mining a staggering 595 million short tons in 2022 alone. Despite mounting global pressure and targeted campaigns, leading insurers continue to exploit loopholes or blatantly disregard their own policies to perpetuate coal mine underwriting.

The report’s message is crystal clear: insurers must firmly commit to ceasing all coal mining coverage in OECD countries by 2030 and reduce their coal coverage by 50% by 2025. This aligns with the actions taken by other responsible insurers, grounded in climate science.

Moreover, the report underlines the urgency of addressing coal emissions. Emissions from coal combustion must plummet by 2025, 2030, and 2050 to remain within the 1.5°C global warming limit. Shockingly, global coal production hit an all-time high in 2022.

Compounding the issue, many of these European Insurers also offer coverage to homeowners and small businesses. However, as climate-related disasters loom large, some insurers are withdrawing from vulnerable regions or hiking premiums, leaving property owners in precarious positions.

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This report is a stark reminder of the insurance industry’s responsibility. The world is watching, and it’s time for these insurers to align their actions with the scientific consensus and step up to mitigate the catastrophic impact of coal on our planet.