Press release published by the Insure Our Future coalition
On Coral Triangle Day, the Insure our Future coalition reveals most of the world’s largest insurers and reinsurers have refused to rule out support for LNG expansion in the Coral Triangle, despite mounting evidence of the threat fossil fuel development poses to the world’s most biodiverse marine ecosystem and the millions of people who depend on it.
French insurer SCOR was the only company to introduce new restrictions on LNG construction projects in the Coral Triangle, according to responses to a letter sent to 30 of the world’s leading (re)insurers asking them to rule out cover for fossil gas expansion in the region.
SCOR appears to have listened to our warnings on the risks posed by fossil fuel expansion in the Coral Triangle. The decision to recognize the Coral Triangle in its assessment and decision-making process will make it difficult to justify coverage for new LNG terminals located in the region.
“Other insurers and reinsurers like AXA, who claim to be strong advocates for biodiversity, should take note. Their existing underwriting policies restricted to UNESCO World Heritage Sites or certain categories of IUCN protected areas are not enough to protect the Coral Triangle. They must recognize the risks that fossil fuel development poses to this precious biodiverse area.
Ariel Le Bourdonnec, Insurance Campaigner at Reclaim Finance
The Coral Triangle: A hotspot of biodiversity and risk
Spanning Indonesia, Malaysia, the Philippines, Papua New Guinea, the Solomon Islands, and Timor-Leste, the Coral Triangle is the world’s most biodiverse marine region and one of the most climate-vulnerable.
Despite covering a small fraction of the world’s oceans, it contains around 76% of global coral species and more than 2,000 species of reef fish. Often called the ‘Amazon of the Sea’ it includes numerous UNESCO World Heritage Sites, Key Biodiversity Areas, Important Marine Mammal Areas, hundreds of Marine Protected Areas and supports the livelihoods of more than 360 million people in the region.
There are already 183 oil and gas fields operating across the Coral Triangle, with dozens more in development and hundreds of exploration blocks. LNG infrastructure is also expanding, with 19 terminals currently operating and at least 27 more planned, many located close to coral reefs, mangroves and seagrass ecosystems. If fully developed, planned oil and gas projects could extend across up to 16% of the region’s marine area.
The current energy crisis provides an opportunity to catalyze a low-cost energy transition towards renewables—one that could negate the need for further investments in gas infrastructure across the Coral Triangle.
Even before the Strait of Hormuz closure, LNG and large-scale gas turbines may be too expensive for Southeast Asia to integrate at the speed industry requires to absorb their planned expansion. Moreover, evidence is emerging that solar combined with batteries can now competitively provide firm power at rates that undercut the price provided by LNG.
Christopher Doleman, LNG/Gas Specialist, Asia at IEEFA
Coral Triangle Day
Coral Triangle Day (June 9th) was established in 2012 to highlight the importance and protection of the world’s richest centre of marine biodiversity. This year, it will also mark the launch of a global campaign to protect the region specifically from fossil fuel expansion.
Activists and communities across the Philippines, Indonesia, Malaysia, the UK, France, Switzerland, Japan, South Korea and the United States are taking creative action today and will continue throughout the month to call on governments, insurers and financial institutions to make the Coral Triangle a no-go zone for new oil, gas and LNG development before irreversible damage is done.
Disappointing responses
SCOR was the only insurer to introduce new protections for the Coral Triangle. No other insurer strengthened its policy as a result of the engagement.
Most major insurers acknowledged biodiversity concerns and highlighted existing biodiversity policies, environmental risk assessments and protections for UNESCO World Heritage Sites, Ramsar wetlands and certain IUCN protected areas, but stopped short of adopting specific measures to restrict support for new fossil gas infrastructure.
There is a gap between what insurers say about biodiversity and what they are willing to do in practice. The Coral Triangle is not a handful of isolated protected areas that can be safeguarded one site at a time, it is the world’s richest marine ecosystem. If insurers are serious about protecting nature, they must move beyond narrow exclusions and stop enabling the fossil fuel expansion threatening the resilience of the entire region.
Isabelle L’Héritier, Senior Strategist & Campaigner
Allianz, Aviva, AXA, Generali, Hannover Re, Talanx, MS&AD, Munich Re, SOMPO, Swiss Re and Tokio Marine all responded to the engagement but declined to introduce dedicated protections for the Coral Triangle. Meanwhile other insurers, including Berkshire Hathaway, Chubb, Travelers, Zurich and Lloyd’s either did not respond or declined to engage substantively.
For coastal communities in Palawan, the Verde Island Passage, Bali, and Tun Mustapha, the climate crisis means dwindling fish catches and days when fisherfolk cannot safely go to sea – threatening their food and livelihoods. Yet the insurance industry continues to back the fossil fuel companies driving this crisis. By shielding these corporations from risk, insurers are actively financing the destruction of vital marine ecosystems and harming frontline communities. In a world facing a climate emergency, this destruction must stop.
Anj Dacanay, Lead Campaigner of Energy Shift Southeast Asia
Insurers have already demonstrated that stronger action is possible. More than 20 insurers and reinsurers have adopted restrictions on oil and gas projects in the Arctic National Wildlife Refuge. The issue is not a lack of precedent, but a lack of willingness to apply similar protections to the world’s richest marine ecosystem.
The Coral Triangle presents insurers with a clear choice: continue enabling fossil fuel expansion in one of the world’s most important marine ecosystems, or align their underwriting with their stated commitments on biodiversity, climate and risk management.
Insurers cannot continue to de-risk the very projects that make the lives of millions relying on the Coral Triangle unsustainable. Every year, the impacts of climate change exacerbate, and the role of insurers becomes even more critical. It’s time for the insurance industry to step up and embrace the true mandate of their business: to protect their policyholders from the most urgent risk they have faced, by putting an end to underwriting new fossil fuel projects.
Gerry Arances, Executive Director at the Center for Energy, Ecology, and Development
