Lloyd’s syndicate member Cincinnati Global is now 15th insurer to commit to not insure or reinsure the existing Trans Mountain pipeline or expansion project
Lloyd’s of London syndicate Cincinnati Global Underwriting has ruled out insuring the existing Trans Mountain tar sands pipeline and the Trans Mountain Expansion Project. Cincinnati Global, a subsidiary of Cincinnati Financial, joins fourteen other insurance companies that have vowed not to touch Trans Mountain.
In an email to Greenpeace Toronto, Cincinnati Global Underwriting’s CEO Derek Eales stated: “I can confirm that Cincinnati Global has no current involvement in the Trans Mountain Pipeline / Expansion project and will not offer any participation on an insurance or reinsurance basis in the future.”
Cincinnati Global’s commitment to not insure Trans Mountain should be a signal to the rest of the Lloyd’s market to follow suit. Lloyd’s Chair Bruce Carnegie-Brown needs to make a clear statement on behalf of all of Lloyd’s members that no Lloyd’s syndicate shall renew insurance for any aspect of the Trans Mountain tar sands pipeline. Lindsay Keenan, European Coordinator for Insure Our Future
Trans Mountain is currently on the market to secure coverage by August 31, 2021, when its policy for the existing pipeline expires. In advance of that deadline, a global campaign is calling on insurers to rule out providing coverage. At the end of June, there were actions in more than 25 cities and towns across four continents calling on insurers to take action to stop insuring tar sands pipelines like Trans Mountain and respect Indigenous rights.
In February 2021, the Canadian-owned Trans Mountain corporation petitioned the Canada Energy Regulator to keep the names of its insurance backers secret, stating that it had “observed increasing reluctance from insurance companies to offer insurance coverage for the Pipeline and to do so at a reasonable price.” The Canada Energy Regulator approved the request on April 29, 2021, and Trans Mountain’s most recent insurance certificate was publicly filed with the insurance company names redacted. Insurers listed on the most recent public certificate who are still believed to be insuring the pipeline include Lloyd’s of London, Chubb, Liberty Mutual, and AIG.
Right now the impacts of climate change, wildfires, floods and heat waves, can be seen all around us. Insurance companies, like Cincinnati Global, know that climate change is bad for their bottom lines, as claims from extreme weather events continue to mount. The Trans Mountain pipeline would lead to the same amount of climate pollution as 21 new coal fired power plants, and would be like adding more fuel to those fires. This pipeline is bad for the climate and it is bad for business. Sven Biggs, Canadian Oil and Gas Program Director for Stand.earth
Construction of the massive tar sands pipeline is plowing ahead up north in the face of sustained, Indigenous-led resistance, and surveillance of land defenders is increasing. Last month, Trans Mountain’s security team invaded the Secwépemc territory of the Tiny House Warriors and installed massive surveillance towers with robotic cameras, floodlights, and fencing, after taking down the security barriers set up by Tiny House Warriors. Trans Mountain has not obtained the Free, Prior, and Informed Consent of the Secwépemc people to build this pipeline on their land, and the project is also being challenged by First Nations and Indigenous communities at other points along the route.
After a thorough review of the Trans Mountain Pipeline and Tanker project under our own unextinguished laws, Tsleil-Waututh Nation withheld our Free, Prior and Informed Consent. We commend Cincinnati Global for their prudent decision and urge other insurers to understand that the violation of Indigenous rights is a material risk, just like climate change. Charlene Aleck, elected councillor and spokesperson for Tsleil-Waututh Nation’s Sacred Trust Initiative