The company stresses the need for clients to have obtained the right to Free, Prior and Informed Consent of concerned local communities. Credit: Scott Graham on Unsplash.

Reinsurer AXIS Capital has adopted a new policy stating that the firm will not insure energy, mining among other projects sans the support of impacted communities, reported Reuters.     

The updated human rights policy stresses the need for clients to have obtained the right to Free, Prior and Informed Consent (FPIC) of concerned indigenous communities.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

FPIC right, listed in the United Nations Declaration on the Rights of Indigenous Peoples, gives the people right to permit or withhold consent to a specific project, and also the power to negotiate the various terms of the project.

The company also specifies the types of transactions the policy applies to.

The latest announcement follows years of demonstrations by affected communities, indigenous rights organisations as well as environmental activists urging insurance firms to only underwrite clients who abide by human rights.

Reuters, quoting non-government organisation Rainforest Action Network (RAN), said AXIS “set a fresh standard for best practice” by becoming the first North American insurer to make such a move.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

AXIS’ previous fossil fuel underwriting restrictions include its move to cut support for the tar sands oil sector in 2020.

Last year, the firm withdrew support for oil and gas drilling in the Arctic National Wildlife Refuge. AXIS has also vowed to phase out coal insurance.

In Europe, Swiss Re and Allianz have reference to FPIC in their human rights policies. While Swiss Re states that it does not support businesses that adversely impact the rights of specific groups of people, Allianz’s policy mentions that human rights-sensitive deals are monitored for FPIC.