Last week MS&AD, one of the top three Japanese non-life insurers, adopted a policy to no longer insure or invest in new coal power plants, becoming the first Japanese insurer to make this move. The policy follows on the heels of similar announcements by four Korean insurers on June 21, isolating Tokio Marine, Japan’s biggest insurer in the power sector, and its smaller rival Sompo, as some of the world’s last remaining coal insurers.
Yuki Tanabe, Program Director at the Japan Center for a Sustainable Environment and Society (JACSES), said: “We welcome MS&AD’s announcement to completely end insurance underwriting for new coal-fired power generation projects, and urge other Japanese non-life insurers, such as Tokio Marine and Sompo, to establish similar policies immediately.”
Peter Bosshard, Global Coordinator of the Insure Our Future campaign, said: “Even if it has serious limitations, MS&AD’s new coal policy is an important initial step in the right direction. Along with the policies adopted by Korean insurers, MS&AD’s move shows that the coal exit train has now reached the Asian insurance industry and that the coal projects which are still in the pipeline have no future.