Reuters has reported that global reinsurance giant Munich Re is to continue underwriting coal business in spite of investor pressure to follow the likes of fellow reinsurers Swiss Re and SCOR.
Swiss Re announced recently that is to begin implementing its thermal coal policy first announced in June 2017, which sees the firm no longer provide re/insurance to businesses with more than 30% exposure to thermal coal across all lines of business.
The Switzerland-based reinsurer’s announcement came after French domiciled reinsurer SCOR revealed in 2017 that it would cease underwriting new thermal coal mines.
And, just last month, Hannover Re pledged to divest from companies dependant on coal for more than 25% of its revenue, which, according to the Unfriend Coal campaign, means close to half of the world’s reinsurers have made commitments to step away from the energy source.
Munich Re does have a rule limiting its investment in businesses dependent on coal for a certain amount of their revenue, similar to Hannover Re, but it appears the reinsurance giant is yet to implement any measures related to underwriting coal business.
According to Reuters, while Munich Re is “repeatedly” looking at the issue, a spokesman explained that the reinsurer “will continue to insure all types of companies, taking into account an assessment of all risk aspects – including environmental, social and governance (ESG) criteria.”
So, it’s clear that despite choosing not to follow in the footsteps of other reinsurers on the issue, it will apply its own ESG criteria to underwriting opportunities.
