According to the German reinsurer's website, as of April 2023, it will not invest in or insure projects involving new oil and gas fields or new midstream oil infrastructure.
Insurers have tightened underwriting and investment policies in recent years to exclude some polluting industries from their business, but they have occasionally fallen short of activists' demands.
More stringent policies have primarily targeted coal, while oil and gas policies have lagged.
According to the Insure Our Future campaign, Munich Re's decision is "a significant step and a clear signal to the global insurance market."
In addition, Munich Re stated that it would not insure or invest in new oil-fired power plants.
Climate activists are concerned that insurers are enabling polluting industries such as coal and oil, whereas insurers have advocated for a more gradual transition in response to a changing industry.
Regine Richter, an Urgewald activist, expressed her desire for "bolder steps on gas."
"However, [Munich Re] has now demonstrated that it is beginning to take its own climate warnings seriously," she said.