MOODY’S WELCOMES INSURERS’ ACTIONS TO CUT FOSSIL FUEL EXPOSURES

Ratings agent Moody’s has welcomed moves by five European insurance groups to cut investments and underwriting for fossil fuels, a move that should reduce their exposure to climate change risks. According to Moody’s, Allianz, AXA, Swiss Re, Munich Re and Zurich are going further than their peers in North America and Asia which continue to insure the coal sector. The five insurers are reducing their underwriting and investment exposure to thermal coal while Swiss Re is also phasing out its involvement with the most carbon intensive oil and gas producers. “We view the insurers’ retreat from thermal coal as positive,” said Brandan Holmes, a Moody's vp. “It reduces their exposure to potential climate change liability risk, and reduces the risk of their investment assets becoming stranded.”