MS&AD, one of the top three Japanese non-life insurers, has adopted a policy to no longer insure or invest in new coal power plants, becoming the first Japanese insurer to make this move. The policy follows on the heels of similar announcements by four Korean insurers.

Peter Bosshard, global coordinator of the Insure Our Future campaign, said: “Even if it has serious limitations, MS&AD’s new coal policy is an important initial step in the right direction. Along with the policies adopted by Korean insurers, MS&AD’s move shows that the coal exit train has now reached the Asian insurance industry and that the coal projects which are still in the pipeline have no future.

According to Fortune 500, MS&AD was the world’s fifth-biggest non-life insurance company by revenue in 2019 and in September 2020, MS&AD adopted a statement on sustainable business activities according to which the insurer “in principle, will not underwrite or invest in new coal-fired power plants” unless deemed necessary for a “stable energy supply of the country concerned.” This language left the door wide open for supporting coal power companies and insuring coal projects around the world. The new policy has now removed this loophole. It however still does not exclude insurance cover for new coal mine projects and for some power plants which are already in the pipeline.

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