Lloyd’s of London member Arch Insurance has committed to no longer insure the Trans Mountain tar sands pipeline after its current insurance policy expires this summer. Arch joins seventeen insurance companies, including fellow Lloyd’s syndicate Aspen most recently, that have dropped Trans Mountain or vowed not to insure the Trans Mountain Expansion Project.
Amid pressure from activists to break ties with the tar sands pipeline expansion, in an email to Coal Action Network, a spokesperson for Arch stated:
“We can confirm that Arch Capital Group Ltd, on behalf of its underwriting operations, will not issue any future insurance policies covering the Trans Mountain Pipeline.”
Trans Mountain experienced firsthand the impacts of climate chaos in 2021. Following historic wildfires in the summer, November brought extreme flooding and mudslides that shut down the existing line for three weeks. This resulted in over two months of lower capacity oil flow.
Flooding displaced over 14,000 meters of stockpiled pipe meant for the expansion, and the company had to use hundreds of meters of pipeline from the new construction project to repair the old line.
More than 18,000 people were displaced from their homes in the climate catastrophe.
Trans Mountain pipeline expansion faces severe flooding and river crossing risks which should make insurers run a mile.
Equipment and generators were submerged in the flooded Coquihalla River; then the storms of November 2021 hit, adding half a billion dollars to the project cost.
Despite this, TMX continues to operate recklessly in flood-risk zones according to Ian Stephe of the WaterWealth Project :
"The company is recklessly setting the stage for further problems at the Vedder River crossing in Chilliwack where the river overflowed dikes. The company filed a geotechnical report that was withheld during route approval hearings and that only finds this major river crossing feasible as planned based on assumptions that were outdated when the report was written and that remain unmet. As a community member with a long history on this project, I am concerned about the impacts from this pipeline on waterways, and insurers should be too."
Charlene Aleck of the Tsleil-Waututh Nation Sacred Trust Initiative raised the question; who will fund a project this as risky as TMX?
"As the 18th insurer to rule out Trans Mountain, Arch is confirming that fossil fuel projects without Free Prior and Informed consent are a material risk. Trans Mountain's steps to keep their insurers secret will not stop the momentum towards a safer and more just world. Trans Mountain is currently looking for more financing to continue construction, but who will fund such a risky project?"
According to the last insurance certificate with company names listed, Lloyd’s syndicates collectively were the biggest insurer for Trans Mountain. Chubb and Zurich were the biggest individual insurers listed providing coverage, but since then, both Chubb and Zurich have cut ties, making Lloyd’s a remaining top target.
By refusing to rule out Trans Mountain across its marketplace, Lloyd’s of London is failing its members and the millions of people whose lives are being destroyed by climate change. With their understanding of risk, why hasn't the industry taken action decades ago?
With Arch and Aspen cutting ties, Beazley and CNA Hardy are the prime targets for public pressure.
This could all be avoided if Lloyd’s ended insurance for fossil fuels across its marketplace.
Lloyd’s of London has increasingly been the target of protests in the UK for its connection to the pipeline in the lead up to Lloyd’s of London actual Annual General Meeting on May 19. Resistance has included 60 people from Extinction Rebellion blocking the entrances at their iconic headquarters last month and a climate memorial led by Pacific Islanders and youth strikers from climate change-affected communities.
Delayed by over a decade of powerful Indigenous-led resistance, court cases, corporate campaigning, construction mishaps, and cost overruns, TMX is on it's knees. Matt Reml, (Lakota) Mazaska Talks says:
“Thanks to the effort of frontline Indigenous communities and grassroots activists, Lloyd’s of London syndicate Arch Insurance joins a growing list of insurance companies committing to no longer providing insurance for the Trans Mountain tar sands pipeline. This is a victory for Indigenous rights, environmental and climate justice. It is time for the Trudeau administration to end the Trans Mountain pipeline."
The projected cost of the Trans Mountain expansion project has quadrupled, according to recent numbers from the Canadian Ministry of Finance. The current price tag is approximately CA$21.4 billion, and the federal government pledged that it would not provide any additional funding. This leaves the budget $8.8 billion CAD short, demonstrating overwhelming opposition and challenges to building oil and gas pipelines.
Victory! The High Court overturns the 2022 planning permission to mine coal at Whitehaven.
Take action – let planners say no to new coal mining TAKE ACTION The public consultation window for the National Policy and Planning Framework represents the first opportunity since the new UK Government was formed to stop any new coal mine application winning planning permission…
We’ve teamed up with our friends at the Good Law Project to obtain expert legal advice, revealing that ERI Ltd’s disastrous proposal to mine two of the Bedwas coal tips is unlikely to get the necessary permissions. If it does, we’re confident we can challenge it…
The Senedd’s Climate Change, Environment, and Infrastructure Committee (CCEIC) has released a critical report on the management of opencast coal mining in Wales, particularly focusing on Ffos-y-Fran, one of the last opencast…
From Tuesday 16th July to lunchtime 18th July, Lord Holgate heard the case, brought by South Lakes Action on Climate Change and Friends of the Earth, against the Government’s 2022 approval of a new underground coal mine at Whitehaven.
Fantastic news today, 20th June 2024. The UK Supreme Court has set a historical precedent, in overturning a previous ruling, considering the legality of approving a new oil site in Surrey. The ground breaking decision stating that ‘downstream’ emissions (those released when a product is used) must be factored into decisions on…
The UK’s last coal-fired power station closes this year, and last year is confirmed the hottest year on record. We’re pleased that the Labour Party has listened to our arguments, along with the Liberal Democrats, the Green Party, and Plaid Cymru which have also ruled out any new coal mining…
Coal Action Network asked Who will stop coal? last weekend in Whitehaven, West Cumbria. At the site of the proposed coal mine, members of the local community and supporters gathered to ensure that the question of the mine is being put to election candidates. Now we need you to crank up the pressure and make sure all election candidates across the UK faces this question as they could decide the fate of the coal mine if elected…
The legal challenges against the government’s approval of a new coal mine off the coast of Cumbria will be heard in London on the 16th to 18th July.