Allianz to Halt Insurance of Hydrocarbons Production in Arctic

Berlin – International insurance giant Allianz on Friday announced that it would stop investments and insurance of oil and gas exploitation in the Arctic by the start of 2023 as part of its commitment to net-zero strategy.

“As of January 1, 2023, Allianz will no longer invest in or underwrite new single-site or stand-alone oil and selected gas risks, oil and gas activities related to the Arctic and the Antarctic or extra-heavy oil and ultra-deep sea risks,” the company said in a statement.

By the start of 2025, Allianz will require hydrocarbon producers to provide strong commitments to become net-zero by 2050 as a pre-condition for insurance coverage of their companies.

The move should prompt world energy sector to accelerate decarbonization and support net-zero transition, according to the statement.

The Arctic, a polar region including the Arctic Ocean, adjacent seas, and parts of Canada, Denmark (Greenland), Finland, Iceland, Norway, Russia, Sweden and the United States (Alaska), is a very promising hydrocarbon production region with large gas and oil reserves.

Companies from different countries such as Russia, Norway, the United States and Canada are developing gas and oil fields in the Arctic zone.

The Allianz Group, founded in Germany in 1890, is one of the leading providers of insurance and financial services in the world.