Arch and AEGIS rule out cover for East African pipeline

Arch Insurance and AEGIS London have ruled themselves out of insuring the East Africa Crude Oil Pipeline (EACOP) as Lloyd’s insurers begin to pull cover after protests by climate groups.

Coal Action Network said the withdrawals by Arch and AEGIS raise the total number of companies to publicly state they will not insure the EACOP to 21.

The #StopEACOP Coalition called out Canopius and Chaucer as Lloyd’s insurers yet to rule themselves out of EACOP. A number of other insurance companies – including AIG, Tokio Marine Kiln, Brit, Chubb and Liberty Mutual – were also named for failing to comment on their involvement with the project.

Lloyd’s insurers have come under increasing pressure during the past few months to rule themselves out of insuring the planned pipeline for Uganda and Tanzania, which campaigners argue runs multiple climate, environmental and social risks, as well as human rights violations.

The campaign has included protests outside Lloyd’s and other insurers’ offices, as well as emails to staff asking them to raise their concerns about the project with senior management.

Rafela FitzHugh from Money Rebellion said: “We have written to Canopius Group, and Chaucer, to tell them to expect us on their doorstep soon if they don’t rule out insuring the EACOP.”

AEGIS London said the project does not meet its ESG policy. Patrick Palmer, head of marketing and communications at Arch Insurance International, told Coal Action Network: “Arch Capital Group Ltd can confirm, on behalf of its underwriting operations, that it has not and will not issue any insurance policies covering the East African Crude Oil Pipeline.”

Omar Elmawi, coordinator of #StopEACOP Coalition, said: “The number of banks (24) and (re)insurers staying away from EACOP is a clear indication that this pipeline and the associated oil fields will cause huge impacts to people, nature and climate if allowed to proceed. Supporting this project is supporting human rights violations and a carbon bomb that will be impossible to diffuse once it goes ahead.”

Isobel Tarr of Coal Action Network added it is now clear that insurance companies want to avoid being implicated in this “disastrous project”, and that hundreds of people taking small actions “can compel insurance companies to take a stand”.

“If companies want to avoid coming under this kind of pressure then they need to adopt robust exclusion policies on all fossil fuels, and this includes Lloyd’s of London,” she said.