Foreign insurers trim exposure to coal assets

Foreign insurers trim exposure to coal assets

Foreign insurers are reducing their exposure to coal assets, which may have an impact on the 27 blocks being offered to companies. Coal India is not affected as it outsources its risk to equipment suppliers. Private firms may face a challenge in the future although currently they easily get insurance cover for equipment from state-run firms, industry executives say.

Foreign insurers and lenders are lukewarm to the coal business as the fuel is dirty and adds to the greenhouse effect. Scientists say coal should be left underground as its use accelerates climate change. The first insurer to shun coal was AXA. Others that have already announced to stay away or reduce exposure in coal are Allianz, Swiss Re, Munich Re, Generali, XL Catlin, AXA, Zurich, Suncorp, QBE and Chubb.

Some of these firms like Allianz, Generali and AXA are present in India via joint ventures, while reinsurers like Swiss Re and Munch Re have been offering covers to Indian insurers for several years now. Read More

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