Allianz has updated its coal insurance restrictions with a new policy. In addition to the previous exclusion of insurance for coal projects (specifically new coal-fired power plants and mines), Allianz will now no longer offer property and casualty insurance for companies whose business model is largely based on coal and which do not have a clear coal exit path from 2023.

Since 2015, Allianz has not financed coal-based business models, and its equity stakes have been divested; fixed income investments made before 2015 are in run-off and no new investments have been allowed since 2015. Furthermore, Allianz will not offer insurance for coal power plants or mines and requires all companies from both property and casualty insurance as well as proprietary investment portfolio to fully phase out coal by 2040 at the latest.

Now the company is going further still by demanding that companies have a credible strategy to transition away from coal at a pace which is compatible with the scientific pathways of limiting global warming to 1.5C and will now no longer offer property and casualty insurance for companies whose business model is largely based on coal and which do not have a clear coal exit path from 2023.

Allianz also warns that the criteria and thresholds laid out above will be tightened over time as the company seeks to remove coal completely from its business.

Allianz is a founding member of the UN-convened Net-Zero Asset Owner Alliance, participates in the Energy Transitions Commission as well as The Investor Agenda and is committed to the Science Based Targets initiative.

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