On Coral Triangle Day, the Insure Our Future coalition said most of the world's largest insurers and reinsurers have not ruled out providing support for liquefied natural gas (LNG) expansion in the Coral Triangle, despite concerns over the environmental risks posed by fossil fuel development in the region.
The coalition noted that the Coral Triangle is widely recognised as one of the world’s most biodiverse marine ecosystems and is home to millions of people who depend on it for their livelihoods.
According to the group, French insurer SCOR was the only company to introduce new restrictions on LNG construction projects in the Coral Triangle.
The move came in response to a letter sent to 30 leading global insurers and reinsurers, urging them to rule out coverage for fossil gas expansion in the region.
Spanning Indonesia, Malaysia, the Philippines, Papua New Guinea, the Solomon Islands and Timor-Leste, the Coral Triangle is recognised as the world’s most biodiverse marine region as well as one of the most vulnerable to climate change.
Despite accounting for only a small portion of global ocean area, it is home to around 76% of the world’s coral species and more than 2,000 reef fish species.
Often referred to as the “Amazon of the Sea,” the region includes multiple UNESCO World Heritage Sites, Key Biodiversity Areas, Important Marine Mammal Areas, and hundreds of marine protected areas. It also supports the livelihoods of more than 360m people.
The region already hosts 183 oil and gas fields in operation, with additional projects under development and hundreds of exploration blocks identified.
LNG infrastructure is also expanding, with 19 terminals currently operating and at least 27 more planned, many of which are located near sensitive ecosystems such as coral reefs, mangroves and seagrass beds. If fully developed, planned oil and gas projects could cover up to 16% of the region’s marine area.
Coral Triangle Day, observed on 9 June, was established in 2012 to raise awareness of the importance of protecting the world’s richest marine biodiversity hotspot.
This year’s observance will also coincide with the launch of a global campaign calling for stronger protection of the region from fossil fuel expansion.
Most major insurers acknowledged biodiversity risks and pointed to existing environmental policies, risk assessments, and protections covering areas such as UNESCO World Heritage Sites, Ramsar wetlands and selected IUCN-designated sites.
However, they stopped short of introducing specific measures to limit support for new fossil gas infrastructure.
The report noted that insurers have already adopted stricter positions in other regions, with more than 20 insurers and reinsurers implementing restrictions on oil and gas projects in the Arctic National Wildlife Refuge.
It added that the challenge is not a lack of precedent, but a reluctance to extend similar safeguards to the Coral Triangle, widely regarded as the world’s most biodiverse marine ecosystem.
The coalition said insurers now face a clear choice between continuing to support fossil fuel expansion in the region or aligning their underwriting practices with stated commitments on biodiversity, climate and risk management.