Hannover Re has become the second insurer in the last few days forced to defend itself against criticism for facilitating the supply of damaging fossil fuels.
The German company came under fire, on its third-quarter results day, from campaigner Regine Richter. Yesterday (9 November), she said the reinsurer was "shirking its responsibilities" in still supporting coal extraction, and falling behind the approaches of rivals Allianz, Swiss Re and Munich Re. "Only Hannover Re holds tight to the coal industry [and is] the last anchor of the coal industry," she said.
Vienna Insurance Group (VIG) had to defend its facilitating role of fossil fuel, as well, after climate protection lobbyists Unfriend Coal revealed VIG and Generali were to insure a Czech coal power plant. VIG said it "strives to integrate environmental protection" in all areas of the business chain.
A spokesperson from Hannover Re, Oliver Suess, said the company's policy on coal had not changed since chief executive Ulrich Wallin told Insurance Asset Risk in September that the fight against coal was a political one, and should not be fought by pressuring legitimate private commerce.
Suess said Hannover Re bars from investment any company making more than 25% of its revenues from mining or coal burning, and that Hannover Re applies the criteria of the UN Global Compact in its investment decisions.
He acknowledged the company had not imposed such restrictions in underwriting, "but instead take our lead from the broader legal framework. Hannover Re indirectly covers, through reinsurance, the generation of energy from fossil fuel resources," he said.
"We take the view that it is better if risks that can be insured and originate from approved or even government-backed projects actually are insured. Insurance serves to spread risk and hence, in the final analysis, offers protection for operators, local residents and consumers".
Hannover Re would "of course" welcome a shift in the energy mix towards alternative energy sources, Suess said.
He noted that the company helps cover the generation of renewable energy by helping building of wind turbines, and constructing of solar modules "and other energy sources".