Lloyd’s of London and other big European insurers are underwriting almost a third of US coal production despite their net zero pledges, according to research, with the Lloyd’s insurance market emerging as the second-biggest player. A report from the Insure Our Future campaign group found that Lloyd’s, Zurich and Swiss Re are among the top 10 insurers of the 25 biggest US coalmines, which produced more than 60% of the country’s output last year. They underwrite 13 mines producing 30.7% of US coal. Coal is the largest contributor of carbon dioxide emissions, and the US is the fourth largest producer of coal worldwide, last year mining 595m short tons – a measure commonly used in the US equal to 2,000 pounds (907.18 kg). Even though 45 big global insurers have adopted policies limiting coal underwriting in recent years, the report found that some are exploiting loopholes or violating their own policies to continue insuring coalmines. AIG is the biggest underwriter of US coal, insuring seven mines producing 167m short tons in 2022, 28.1% of national output. Lloyd’s of London comes second, with Lloyd’s insurers underwriting 10 mines producing 135m short tons, 22.8% of output. Most of the insurance certificates analysed by the campaign group involving Lloyd’s say “Underwriters at Lloyd’s of London” or “Certain underwriters at Lloyd’s”, without naming the firms. As the world’s biggest insurance market, Lloyd’s has committed to leading the market to a net zero underwriting position, yet it does not mandate or restrict the underwriting policies of its 85 market members. As a member of the Net Zero Insurance Alliance, part of the Glasgow Financial Alliance for Net Zero (GFANZ) set up by the UN climate envoy Mark Carney, Lloyd’s has pledged to become net zero as a corporation by 2025, while the investments from its £3bn central fund will be net zero by 2050. The market started divesting from coal in 2018 but has been slower than other insurers. Lloyd’s declined to comment specifically on the report, but said its position remained that as all insurance in the market was underwritten by managing agents, not Lloyd’s itself, it is for the individual businesses that operate in the the company’s market to make their own business and strategy decisions. Lloyd’s will provide guidance and oversight to the market. Lindsay Keenan, the European coordinator of Insure Our Future, said: “Lloyd’s is exposed yet again as a leading insurer of the fossil fuels that are causing the climate crisis.” He added: Other Lloyd’s members, managers, staff and investors need to step up, alongside civil society, and help to persuade their peers … to firmly commit to stop insuring all coal mining in OECD countries by 2030, and to reduce their coverage of coal by 50% by 2025, in line with the action taken by other leading insurers, as directed by climate science.” The Swiss firm Zurich insures two coalmines producing 4.9% of US output and Swiss Re insures another producing 3%. Both were founder members of the Net Zero Insurance Alliance, but left in the spring along with other insurers. Fear of financial losses amid increasing numbers of climate-related natural disasters have prompted some insurers to stop insuring homes and businesses in some areas – including entire US states – or drastically raise their premiums. They include AIG, Liberty Mutual and Farmers Insurance Group, a company affiliated with Zurich Insurance Group. The report is based on public record requests for insurance certificates for the 25 biggest US mines producing more than 60% of the country’s coal. They do not cover smaller mines, so European insurers may well be underwriting an even greater percentage of US coal production.