Windpower Engineering & Development

  • Home
  • Articles
    • Most recent posts
    • News
    • Featured
  • Resources
    • Digital issues
    • Podcasts
    • Suppliers
    • Webinars
    • Events
  • Videos
  • 2025 Leadership
    • 2024 Winners
    • 2023 Winners
    • 2022 Winners
  • Magazine
  • Advertise
  • Subscribe

Insurance industry’s anti-coal stance to deliver long-term climate benefits, finds GlobalData

By Michelle Froese | August 5, 2019

Insurers are providing cover less frequently for energy providers that remain committed to the use of coal to help reduce climate change and force the energy industry to embrace renewables. While insurers stand to lose business in the short term, the long-term benefits to the industry could be considerable, finds GlobalData, a leading data and analytics company.

Insurance industry’s commitment to cleaner energy sources will deliver long-term benefits despite potential short-term losses, says GlobalData.

“With climate change potentially causing the increased frequency of extreme weather events and rising sea levels, ceasing protection for fossil fuel-based energy providers may enable the industry to benefit from reduced exposure to potential environmental liability risks and enhance its public reputation,” says Daniel Pearce, Insurance Analyst at GlobalData.

AXA is extending its climate change policy to its recently acquired XL division. The move will result in XL no longer insuring any construction projects related to coal-fired power plants and the extraction of tar sands, bringing the XL division into line with the rest of the AXA business. It is expected to drive a €100m ($112.16m) loss in revenue, mainly in 2020.

However, it will undoubtedly improve public perception of an insurance industry that has historically borne a fractious relationship with consumers for its typically money-first approach.

Other insurers are also taking action. Chubb recently announced a ban on coal-related underwriting and investment. The company will no longer provide insurance or investments to companies that operate coal-fired plants, or to firms for which coal mining generates more than 30% of revenue. According to insurance group Moody’s, there has been no meaningful loss of business for the handful of providers that have taken such action.

Pearce adds: “On the surface, distancing itself from coal may have a significantly negative impact on the insurance industry, given the loss of business. However, in addition to the possible progress in consumer perception, the industry may in fact enjoy a considerable financial benefit in the longer term as a result of any anti-coal stance.”


Filed Under: News
Tagged With: GlobalData
 

About The Author

Michelle Froese

Related Articles Read More >

Richardson Electronics to deliver pitch energy modules to TransAlta wind fleets
Equinor halts work on Empire Wind offshore project after federal government order
ARESCA wants input on offshore wind standards
US wind market has worst install year since 2013

Podcasts

Wind Spotlight: Looking back at a year of Thrive with ZF Wind Power
See More >

Windpower Engineering & Development Digital Edition

Digital Edition

Browse the most current issue of Windpower Engineering & Development and back issues in an easy to use high quality format. Clip, share and download with the leading wind power engineering magazine today.

Windpower Engineering & Development
  • Wind Articles
  • Solar Power World
  • Subscribe to Windpower Engineering
  • About Us/Contact Us

Copyright © 2025 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy | Advertising

Search Windpower Engineering & Development

  • Home
  • Articles
    • Most recent posts
    • News
    • Featured
  • Resources
    • Digital issues
    • Podcasts
    • Suppliers
    • Webinars
    • Events
  • Videos
  • 2025 Leadership
    • 2024 Winners
    • 2023 Winners
    • 2022 Winners
  • Magazine
  • Advertise
  • Subscribe