Zurich Insurance Group Ltd. said it will stop insuring new oil and gas projects.
The group will publish further details later this year along with its climate transition plan, it said in a statement to BestWire. “By the end of the year (2024) we expect these positions to be fully embedded within our underwriting process,” the group said.
Tokio Marine Holdings Inc. earlier said it will work with about 60 companies in greenhouse gas-intensive sectors to develop decarbonization plans to tighten its restrictions on providing insurance for such industries.
The group’s Tokio Marine & Nichido Fire Insurance Co. Ltd., the largest commercial insurer in the group, will no longer provide insurance underwriting, investment and financing for companies that fail to have decarbonizing plans in place by 2030, it said in a statement. These 60 companies account for about 70% of greenhouse gas emissions in its insurance underwriting portfolio.
The companies are among 200 companies the group said are in its engagement interim target for emissions. The industries involved include coal power, oil and gas, transportation, real estate, steel, cement, aluminum and agriculture, the group said.
Underwriting entities of Zurich Insurance Group Ltd. have current Best’s Financial Strength Ratings of A+ (Superior) and A (Excellent).