Major Insurers Reject Deep Sea Mining: A Victory for us

Three Major Insurers on the Global Scale Exclude Deep Sea Mining from Underwriting Portfolios. Reflection of A Growing Industry Trend?

Some months ago, three leading global insurers – Hannover Re, Zurich Insurance Group, Vienna Insurance Group (VIG), and Swiss Re officially excluded Deep Sea Mining (DSM) from their underwriting portfolios.

The lack of support from insurance giants poses a significant hurdle on deep sea mining activities. This decision reflects a growing concern within the financial sector, it is indicative of a financial recognition of the environmental and financial risks associated with this type of mining.

For our purposes, this trend poses a major impediment to the industry getting off the ground.

“The stance of these major insurance companies to exclude DSM sends a powerful message to the entire financial sector about the viability of DSM. Hannover Re and Swiss Re are two of the world’s top three global reinsurers.¹ Their exclusion of DSM significantly impacts the industry, as reinsurers like them provide crucial financial backing for other insurers.”

by Andy Whitmore, finance advocacy officer at the Deep Sea Mining Campaign (DSMC)

What this means for industries who are looking to mine the deep sea is that the financial burden and risks have become increasingly challenging. As was discussed by the ISA on their 2024 June meetings, the regulations for DSM should eventually require insurance in order for companies to receive a mining license. The risks are exemplified by The Metals Company (TMC) under the Republic of Nauru, which is attempting to secure a mining licence from the ISA despite incomplete regulations.

However, while these news are a victory for the deep sea mining opposition, it remains to be seen how TMC's application will be reviewed in light of these news. Just because it became harder to mine the deep sea, it does not mean that it became impossible.

Stay tuned.