East African Crude Oil Pipeline denied coverage

A coalition of 28 insurers and reinsurers, including SiriusPoint, Riverstone International, Enstar Group, Blenheim and SA Meacock, has agreed not to cover the East African Crude Oil Pipeline (EACOP).

This decision came after environmentalist groups such as Coal Action Network, Insure Our Future and StopEACOP had put pressure on insurance companies over their involvement in the fossil fuel project.

In 2022, seven market players, namely AXA, Hannover Re, Munich Re, Zurich, SCOR, Swiss Re and Allianz, have declared that they will no longer be supporting the EACOP project whether directly or indirectly.

Other insurers, including AIG, Tokio Marine, Chaucer and Hiscox, are still providing insurance coverage for the project.

For the record, EACOP is planning to build a 1 443 km pipeline designed to transport crude oil from Hoima in Uganda to the port of Tanja in Tanzania. Well drilling for this project began in 2023, with production scheduled to start in 2025.