'Major Step Forward': AIG to Stop Insuring Coal, Tar Sands, and Arctic Drilling

[BeckyDem]

Posted on March 2, 2022 by Yves Smith

Yves here. I’m not an expert in the financing of oil projects, but I would assume the loss of insurance cover is a big deal. The questions here are how much market share AIG has in this “product” and how much other insurers will raise prices due to AIG’s exit, and how much more lenders would demand in interest and other preferential terms to fund development without these guarantees.

By Kenny Stancil. Originally published at Common Dreams

Climate justice advocates celebrated Tuesday in response to insurance giant AIG’s announcement that it will no longer invest in or provide insurance coverage for any new Arctic drilling activities nor will it finance or underwrite the construction of any new coal-fired power plants, thermal coal mines, or tar sands projects, effective immediately.

AIG also said that it will immediately stop investing in or underwriting “new operation insurance risks” of coal-fired power plants, thermal coal mines, or tar sands projects owned by corporations that derive 30% or more of their revenue from those industries or generate over 30% of their energy production from coal.

By January 1, 2030 at the latest, AIG said that it will phase out the underwriting of all “existing operation insurance risks” and cease new investments in those clients that still depend on coal or tar sands for 30% or more of their revenue, or coal for over 30% of their electricity generation.
https://www.nakedcapitalism.com/2022/03/major-step-forward-aig-to-stop-insuring-coal-tar-sands-and-arctic-drilling.html


( I love good news. )

[Magoo48]

1. Good news.

[BeckyDem]

8. Yep, and a turning point too, I hope.

[SheltieLover]

2. Good!

[BeckyDem]

7. It is pretty great.

[live love laugh]

3. AIG is a horrible company. They continually double billed my mom for life insurance

after she patronized them for more than a decade and after she made numerous attempts to reconcile her statements. They prey on older people and send billing letters that payments are due when they aren’t. They do not sent out any statements showing the balance of a policy and current payment allocation--they just send out a list of payments received and they attached THREE DATES to each payment making it confusing to identify exactly where they applied the payments and impossible to tell even where the last payment sent was credited.

She finally drew down the cash value of the policy to avoid the continuing fraud.

Online reviews attest to their lack of credibility.

[BeckyDem]

5. Sounds like their architect should be in jail.....that is horrible.

[onecaliberal]

4. This really is good news.

[BeckyDem]

6. Yep and it feels good to hear good news.

[onecaliberal]

9. Yes it does.

[hippywife]

10. The article originated at commondreams.org

https://www.commondreams.org/news/2022/03/01/major-step-forward-aig-stop-insuring-coal-tar-sands-and-arctic-drilling