Hannover Re pulls East African oil pipeline coverage
Reinsurance giant joins other carriers in refusing to underwrite controversial project, as protestors urge Munich Re and Lloyd’s also to withdraw
Hannover Re has become the latest company to state it will not insure the East African crude oil pipeline (EACOP).
It joins Swiss Re, Axa, Zurich and Scor in confirming they will not provide cover for the pipeline.
EACOP is under construction and was planned to transport crude oil from Uganda's oil fields to the Tanzanian port of Tanga on the Indian Ocean. Once completed, the pipeline will be the longest heated crude oil pipeline in the world. Because of the large-scale displacement of communities and wildlife, global environmental groups are protesting against its construction and finance.
After Scor recently committed not to insure EACOP, Hannover Re followed suit, saying: “We refrain from providing reinsurance coverage for EACOP due to non-compliance with our ESG expectations. EACOP has been put on an exclusion list about a year ago and our facultative underwriters have been informed accordingly.”
Campaigners welcomed the move.
“The statement by Hannover Re adds to the troubles the pipeline and its associated oil fields are facing. Momentum against the project is building with each day," Omar Elmawi, co-ordinator of the #StopEACOP campaign, said.
"The list of financiers and insurers rejecting EACOP is rapidly increasing. This is a testament to the resilience and determination from all quarters to defend humanity, livelihoods and the environment. We thank these insurance companies for choosing humanity over corporate greed and call on Munich Re and Lloyd’s to do the same.”
Coleen Scott, legal and policy associate at Inclusive Development International, added: “Five of the world’s largest re/insurers have now declined coverage for EACOP due to environmental and social concerns, joining 15 commercial banks in renouncing the project. This is a remarkable number of institutions backing away and with every new rejection, the controversy around this project continues to snowball. Soon it’ll be too toxic for any bank or insurer to touch.”