(Reuters) – Zurich Insurance Group has decided not to renew coverage of the Canadian government's Trans Mountain oil pipeline, a spokeswoman for the project, who is opposed by environmental campaigns and some domestic groups, said.
All companies in financial services are under pressure from environmental campaigns to stop doing business with the fossil fuel industry.
A planned expansion of the Trans Mountain pipeline, which transports oil to British Columbia from Canada's largest oil-producing province in Alberta, has also drawn ire from some First Nations leaders concerned about the impact on their communities.
A spokesman for Zurich said the insurer did not comment on customer relationships.
Trans Mountain said it has the insurance it needs for its existing operations and “expansion project. "
" There is still sufficient capacity in the market to meet Trans Mountain's insurance needs and our renewal, "the spokeswoman said in an e-mail statement.
The Trans Mountain pipeline's annual liability insurance contract, dated August 201
The insurance, which provides $ 508 million coverage, runs until August 2020, the filing showed.
Zurich was the sole insurer for the first 8 million potential insurance payments and the company provided a total of $ 300 million in coverage with other insurance companies, the energy 2019/20 legislative application showed.
Lloyd & # 39 ;s of London Syndicates was the project's largest insurer during 2019-2020. Chubb Ltd. and Zurich were the largest listed insurance companies covering.
Other insurance companies that have provided coverage for the Trans Mountain project this year include Liberty Mutual Insurance Co. and the Temple of the Munich Reinsurance Co. unit.
Munich Re said it would review the contract with its new guideline for oil sands guarantee, which has a higher carbon footprint than conventional oil, but no renewal decision was made.
Lloyd & # 39; s of London, Liberty Mutual and Chubb did not immediately comment.