(Reuters) – Insurer Zurich has made up our minds to not renew hide for the Canadian govt’s Trans Mountain oil pipeline, said a spokeswoman for the mission, which is antagonistic by environmental campaigners and some indigenous groups.
FILE PHOTO: The growth of the Canadian govt-owned Trans Mountain oil pipeline superior to a brand contemporary building stage, in Acheson, Alberta, Canada December 3, 2019. REUTERS/Candace Elliott/File Photograph
All financial companies companies are below pressure from environmental campaigners to quit doing industry with the fossil gas industry.
A planned growth of the Trans Mountain pipeline, which ships oil to British Columbia from Canada’s major oil-producing province of Alberta, has also drawn ire from some First Nations leaders anxious about the impact on their communities.
A spokesman for Zurich said the insurer failed to touch upon buyer relationships.
Trans Mountain said it has the insurance it wants for its existing operations and the “growth mission”.
“There stays sufficient ability available within the market to meet Trans Mountain’s insurance wants and our renewal,” the spokeswoman said in an emailed statement.
The Trans Mountain pipeline’s annual liability insurance contract, dated August 2019 however filed with the Canada Energy Regulator on April 30, 2020, had confirmed Zurich become as soon as the lead insurer for the pipeline.
The insurance, which gives $508 million of hide, runs to August 2020, the submitting confirmed.
Zurich become as soon as the only real insurer for the predominant $8 million of capability insurance payouts and the corporate supplied a entire of $300 million in hide with other insurers, the 2019/20 vitality regulatory submitting confirmed.
Lloyd’s of London syndicates had been the mission’s biggest insurer in 2019-2020. Chubb and Zurich had been the major listed insurers offering coverage.
Other insurers that occupy supplied hide for the Trans Mountain mission this year comprise Liberty Mutual and Munich Re unit Temple.
Munich Re said it will overview the contract given its contemporary underwriting guiding precept on oil sands, which occupy a greater carbon footprint than ragged oil, however no renewal resolution had been made.
Lloyd’s of London, Liberty Mutual and Chubb failed to at this time comment.
Reporting by Noor Zainab Hussain in Bengaluru, Carolyn Cohn in London, Rod Nickel in Winnipeg, Manitoba; extra reporting by Suzanne Barlyn in Washington Crossing, Penn; editing by Barbara Lewis