Hannover Re has become the latest reinsurer to openly declare its opposition to the troubled East African Crude Oil Pipeline (EACOP), joining Swiss Re, AXA, Zurich, and SCOR in doing so.
In a statement, Hannover Re said, “We desist from providing reinsurance coverage for EACOP owing to noncompliance with our ESG criteria.” “About a year ago, EACOP was placed on an exclusion list, and our facultative underwriters were notified.”
“The comment by Hannover Re adds to the problems that the pipeline and its accompanying oil fields are facing,” said Omar Emawi, the campaign’s coordinator. “With each passing day, the opposition to the idea grows stronger. EACOP is being rejected by an increasing number of bankers and insurers. This is a monument to everyone’s perseverance and resolve to protect people, livelihoods, and the environment. We applaud these insurers for prioritising people before profit, and we urge Munich Re and Lloyd’s of London to follow suit.”
Lindsay Keenan, EU coordinator for Insure Our Future, said, “Hannover Re’s promise is part of its broader policy not to take on any new reinsurance for new gas or oil development, storage, or pipelines.” “This policy, together with Swiss Re’s recently modified oil and gas policy, which also rejects EACOP, focuses all emphasis on Munich Re, the world’s largest reinsurer.” Joachim Wenning, CEO of Munich Re, should reply with a world-class oil and gas strategy and a firm promise not to reinsure EACOP.”
“Five of the world’s leading (re)insurers have now denied coverage for EACOP, joining 15 banks in rejecting the initiative,” said Coleen Scott, Inclusive Development International’s legal and policy associate. “This is a staggering number of institutions withdrawing, and the backlash against the idea grows with each new rejection. “Any bank or insurance company will be unable to touch it in the near future.”
Regine Richter, an energy and finance campaigner for Urgewald, a German environmental and human rights organisation, said, “Three of the world’s four largest reinsurers have refused to reinsure EACOP.” “Munich Re has long overdue to follow suit. Climate change has been predicted for nearly 50 years, yet little has been done to address it. Refusing to purchase new oil insurance