Who gains from saving nature
Ledger 1 : 33 — For each dollar financing nature-based solutions in 2023, about $33 financed activities harmful to nature. (UNEP)
Cases / Insurance declined or withdrawn · Canada · 2018–2024

Trans Mountain pipeline insurers (Canada)

Nature's voice · report
No measurement of the harm done to me here is on record.
Did nature suffer? Not measured.
Not on record
  • The record does not name which of my species, waters, soils or forests were harmed.
What the record lacks: 6 none on record · 2 insufficient · 1 not measured · 4 disputed · 5 unclear See the gaps

Trans Mountain, an oil pipeline owned by the Government of Canada, lost a series of private insurers between 2019 and 2022. In 2021 the regulator allowed the names of its insurers to be kept confidential, and a 2024 regulation allowed the Crown corporation to set up its own insurer.

17, then 18Insurers reported to have refused or ended cover for the pipeline
Stand.earth list, about 2022, as reported by Canadian Underwriter; a campaign-side count. The current insurer panel has been confidential since 29 April 2021, so the count could not be compared with a primary list.

Status As of the December 2024 financial statements: the expansion had been in service since 1 May 2024, the insurer panel remained confidential, and no evidence was found that the captive insurer permitted in May 2024 had been created.

What?
A series of private insurers declined to renew cover for the Trans Mountain pipeline between 2019 and 2022; the regulator allowed insurer names to be kept confidential and a 2024 regulation allowed the Crown corporation to create a captive insurer. Canada Energy Regulator
Where?
Canada: the pipeline operated by Trans Mountain Corporation, regulated by the Canada Energy Regulator. Canada Energy Regulator
When?
Insurer exits from 2019 to 2022; CER ruling 29 April 2021; regulation registered 3 May 2024. Canada Gazette, Part II
Who?
Gained
  • Trans Mountain (Crown corporation) — Confidential treatment of its insurers' names for the operating pipeline (CER ruling, 29 April 2021). Canada Energy Regulator
  • Trans Mountain (Crown corporation) — Permission to set up a captive insurer or join mutual insurers without separate cabinet approval (SOR/2024-78, 3 May 2024). Canada Gazette, Part II
Lost
None on record
Harmed
None on record
Why?
Trans Mountain cited increasing reluctance by insurers; the government's rationale for the 2024 regulation referred to pressures on insurers including environmental ones. Individual insurers gave other reasons, such as risk appetite (Argo) and oil-sands policies (Talanx, Munich Re). Canada Gazette, Part II
How?
Insurers declined to renew; the regulator kept their names confidential; the government made it possible to self-insure through a captive. Canada Energy Regulator
6 of 6 questions answered from the record

What happened

The record, in order.

The Government of Canada bought the Trans Mountain pipeline in 2018 for C$4.5 billion. An expansion of the pipeline entered service on 1 May 2024 at a cost of about C$34 billion, according to Global News. As of May 2024 the government guaranteed the company's credit facility of C$18.9 billion, according to Trans Mountain's financial statements.

According to trade-press reports, the 2019–20 insurance policy had a total cover of $508 million. Zurich was lead insurer, and Reuters reported that Chubb and Zurich were the largest listed insurers. A certificate listing of June 2020 cited by the Rainforest Action Network named 11 insurers, including Lloyd's syndicates, Zurich, Chubb's European Group, Liberty Mutual and Temple Insurance, a unit of Munich Re, with C$250 million of cover. Talanx said in June 2020 that it had already left in 2019 and had adopted an oil-sands policy in 2020.

Insurers then withdrew one by one. Zurich did not renew in July 2020 and did not comment on customer relationships; Trans Mountain said there remained adequate capacity in the market to meet its insurance needs. Munich Re said it would review its contract under its oil-sands guideline. Argo said on 4 June 2021 that it would not renew. Chubb became the 16th insurer to refuse to cover the pipeline in September 2021, according to Insurance Portal. A Stand.earth list reported around 2022 counted 17, then 18.

In February 2021 Trans Mountain asked the Canada Energy Regulator (CER) to keep its insurers' names confidential, citing "increasing reluctance" by insurers. On 29 April 2021 the CER Commission granted the request for the operating pipeline, finding that disclosure could reasonably be expected to make it harder for Trans Mountain to get insurance at a reasonable price. Coverage amounts remained public, and the ruling did not apply to the expansion then under construction.

A regulation registered on 3 May 2024 (SOR/2024-78) allowed the Crown corporation to set up a "captive insurance" company or join mutual insurers without separate cabinet approval. The government's stated rationale was that insurers change their level of coverage based on various pressures, including environmental ones, and the need for a fallback if existing insurers reduce their coverage. The research found no evidence that a captive had actually been set up.

  1. 2018Government of Canada buys the pipeline for C$4.5 billion
  2. 2019Talanx says it exited this year; 2019–20 policy of $508 million with Zurich as lead insurer
  3. 2020Apr: filing with the CER lists insurers; Jun: certificate lists 11 insurers; Jul: Zurich does not renew, Munich Re says it will review its contract
  4. 2021Feb: Trans Mountain asks to keep insurer names confidential; 4 Jun: Argo will not renew; Sep: Chubb becomes the 16th insurer to refuse; 29 Apr: CER grants confidential treatment
  5. 2022Arch, a Lloyd's syndicate, drops out; Stand.earth list counts 17, then 18 insurers that have refused cover
  6. 20241 May: expansion enters service (cost about C$34 billion); 3 May: SOR/2024-78 registered, allowing a captive insurer; May: C$18.9 billion credit facility guaranteed by the government

What was said

Claims, in the words of those who made them.

“increasing reluctance”

“could reasonably be expected to make it harder for Trans Mountain to get insurance at a reasonable price.”

“There remains adequate capacity in the market to meet Trans Mountain's insurance needs and our renewal.”

Trans Mountain, on Zurich's non-renewal · July 2020

“does not align with the insurer's risk appetite anymore”

“insurers change their level of coverage based on various pressures (i.e. environmental, own financial capacity, etc.)”

Where accounts differ

Each party's account, side by side, with its source. The record does not settle these points; it shows them.

Why did insurers leave the pipeline?
Company or project
Trans Mountain

Said in 2020 that there was adequate capacity in the market; asked the CER in February 2021 to keep insurer names confidential, citing increasing reluctance by insurers.

Canada Energy Regulator
Company or project
Argo

Its spokesman said the project did not align with its risk appetite anymore (as reported).

Business Insurance
Company or project
Zurich

Did not comment on customer relationships.

Business Insurance
Communities and civil society
Stand.earth (via Canadian Underwriter)

Counted 17, then 18 insurers that refused cover, around 2022.

Canadian Underwriter
How many insurers have refused cover?
Press and investigations
Insurance Portal

Chubb became the 16th insurer to refuse to cover the pipeline in September 2021.

Insurance Portal
Communities and civil society
Stand.earth (via Canadian Underwriter)

A list of 17, then 18, around 2022; undated in the sources reviewed.

Canadian Underwriter
Which insurers were the largest on the 2019–20 policy?
Press and investigations
Reuters (via Hart Energy)

Chubb and Zurich were the biggest listed insurers.

Hart Energy
Press and investigations
Insurance Business (13 May 2020, as quoted in the sources reviewed)

Temple Insurance, a Munich Re unit, was the pipeline's third biggest insurer with $250 million of cover; insurers in the Lloyd's market had underwritten $460 million.

How it looked

What was shown, beside what was recorded.

Shown

  • There was adequate capacity in the insurance market to meet the company's needs and its renewal.
    Trans Mountain
  • Disclosing insurers' names could make it harder to obtain insurance at a reasonable price.
    Canada Energy Regulator Commission · Canada Energy Regulator

Recorded

  • Zurich, the lead insurer on the 2019–20 policy of $508 million, did not renew in July 2020; it was the sole insurer of the first C$8 million.
    Business Insurance
  • Argo declined to renew on 4 June 2021.
    Business Insurance
  • Chubb became the 16th insurer to refuse to cover the pipeline in September 2021.
    Insurance Portal
  • A Stand.earth list reported around 2022 counted 17, then 18 insurers that had refused cover.
    Canadian Underwriter
  • The CER Commission granted confidential treatment of insurer names on 29 April 2021; coverage amounts stay public; the ruling applies to the operating pipeline, not the expansion that was under construction.
    Canada Energy Regulator
  • SOR/2024-78, registered 3 May 2024, lets the Crown corporation set up a captive insurer or join mutual insurers without separate cabinet approval. The C$1 billion financial-resources minimum is met with general liability insurance plus a line of credit.
    Canada Gazette, Part II

Who gained

Money that reached nature, beside money that stayed elsewhere.

Reached nature or the ground

Not published
No figure published.

Gained elsewhere

Not totalled
Currency: CAD · Window: 2018–2024. All figures cover the same period. * Estimate built from cited figures.

Responses on record

  • trans-mountain (July 2020; February 2021): Said there remained adequate capacity in the market to meet its insurance needs and its renewal; earlier asked the CER for confidentiality citing increasing reluctance by insurers. · Canada Energy Regulator
  • zurich (July 2020): Did not renew in July 2020 and did not comment on customer relationships. · Business Insurance
  • munich-re (July 2020): Said it would review the contract under its oil-sands guideline. · Carrier Management
  • argo (4 June 2021): Its spokesman said the project did not align with the insurer's risk appetite anymore (as reported). · Business Insurance
  • talanx (June 2020): Said it had exited in 2019 and had adopted an oil-sands policy in 2020. · Rainforest Action Network
  • canada-energy-regulator (29 April 2021): Granted confidential treatment of insurer names for the operating pipeline. · Canada Energy Regulator
  • government-of-canada (3 May 2024): Registered SOR/2024-78 allowing the Crown corporation to set up a captive insurer, citing pressures on insurers' coverage. · Canada Gazette, Part II

In court and with insurers

Every proceeding and every insurer decision on record.

Lawsuits and rulings

  1. 2021-02–2021-04-29Claimant won
    Request for confidential treatment of Trans Mountain's insurer names
    Canada Energy Regulator Commission · Regulatory · Trans Mountain Pipeline ULC →

    The Commission granted confidential treatment of insurer names for the operating pipeline, finding disclosure could reasonably be expected to make it harder to get insurance at a reasonable price. Coverage amounts stay public; the ruling does not apply to the expansion that was under construction. Canada Energy Regulator

Insurers

  1. 2020Cover declined
    Zurich → Trans Mountain
    Stated reason: Did not renew; reported as lead insurer on the 2019–20 policy ("$300 million" of joint cover per Reuters).

    Lead insurer on the 2019–20 policy of $508 million and sole insurer of the first C$8 million; did not renew in July 2020 and did not comment on customer relationships. Business Insurance

  2. 2020No policy found
    Munich Re (through Temple Insurance) → Trans Mountain

    Temple was listed with C$250 million of cover in the June 2020 certificate listing. Munich Re said it would review the contract under its oil-sands guideline; the outcome not on record. Rainforest Action Network

  3. 2021Cover declined
    Chubb (Chubb European Group) → Trans Mountain

    Reported in May 2020 as underwriting $185 million with other insurers; became the 16th insurer to refuse to cover the pipeline in September 2021. Insurance Portal

  4. 2020No policy found
    Lloyd's syndicates → Trans Mountain

    Insurers in the Lloyd's market were reported to have underwritten $460 million in 2020. Arch, a Lloyd's syndicate, dropped out in 2022.

  5. 2021Cover declined
    Argo → Trans Mountain

    Would not renew on 4 June 2021; its spokesman said the project did not align with its risk appetite anymore (as reported). Business Insurance

  6. 2019Cover declined
    Talanx → Trans Mountain

    Said in June 2020 that it had exited in 2019 and adopted an oil-sands policy in 2020. Rainforest Action Network

  7. Cover declined
    Liberty Mutual, HDI, Apollo, Ascot, AXA XL → Trans Mountain

    Listed in the sources reviewed as earlier insurers that later withdrew (HDI from early works in 2015; Apollo until September 2021). Dates for the others are not given.

  8. 2020No policy found
    AIG Canada → Trans Mountain

    Listed in the 2020 certificate, according to a trade-press article cited in the sources reviewed.

  9. No policy found
    Berkshire Hathaway, Korean Re, Markel, WR Berkley → Trans Mountain

    Named by a campaign-side source as insurers that had never ruled out cover; not confirmed by the insurers.

  10. 2024No policy found
    Captive insurer permitted by SOR/2024-78 → Trans Mountain

    The regulation allows the Crown corporation to set up a captive insurer; the research found no evidence that one had been set up. Canada Gazette, Part II

What nature saw

Outcomes measured on the ground, and nature's note.

Nature's report opens this page. Below: further outcomes measured on the ground.

Insurers reported to have refused or ended cover
17, then 18
Stand.earth list, about 2022 (campaign-side count)
Insurer names
Confidential
Since the CER ruling of 29 April 2021; coverage amounts stay public
Total cover on the 2019–20 policy
$508 million
Trade-press report; Zurich the lead insurer

What we don't know

Undisclosed, unproven, untried: recorded as data.
No court caseKey earnings undisclosed

Nature

  • Not measured Harm to nature: The record holds no measurement of harm to nature.

Insurers

  • Unclear Munich Re (through Temple Insurance): no decision on record.
  • Unclear Lloyd's syndicates: no decision on record.
  • Unclear AIG Canada: no decision on record.
  • Unclear Berkshire Hathaway, Korean Re, Markel, WR Berkley: no decision on record.
  • Unclear Captive insurer permitted by SOR/2024-78: no decision on record.

Figures

  • Insufficient Insurers that declined cover: Stand.earth list as reported by Canadian Underwriter (17, then 18); campaign-side count, undated in the sources reviewed.

Accounts

  • Disputed Why did insurers leave the pipeline?
  • Disputed How many insurers have refused cover?
  • Disputed Which insurers were the largest on the 2019–20 policy?
  • None on record Zurich: Did not comment on customer relationships.

Record

  • None on record The current insurer panel is confidential; filings after the CER ruling of April 2021 were made confidential.
  • None on record The research found no evidence that a captive insurer was actually set up under SOR/2024-78.
  • Disputed The original CER certificate of 2020 could not be checked; the 2019–20 cover figures come from trade press, and reports differ on how they rank the largest insurers on the policy (Chubb and Zurich as the largest listed insurers; Temple, a Munich Re unit, as the third largest with $250 million; Lloyd's syndicates as underwriting $460 million).
  • None on record The Stand.earth count of 18 or more is undated, and no primary source was found for a count of 16 or more by 2022.
  • Insufficient Reported but not independently verified: that Lloyd's syndicates were the biggest insurer on the 2019–20 policy.
  • None on record The outcome of Munich Re's review of its contract not on record.
  • None on record No court case about the insurers' withdrawal was found.

Did the harm stop?

the sources reviewed give no environmental harm attributed to the pipeline. The expansion entered service on 1 May 2024, after a series of private insurers had declined to renew.

Who paid?

the sources reviewed give no damage payment. As owner, the Government of Canada guarantees the company's C$18.9 billion credit facility (as of May 2024).

Sources

Voices on record: ✓ Company or project✓ Government and regulators— Courts✓ Press and investigations✓ Communities and civil society— Researchers

Company or project

Government and regulators

Press and investigations

  3. Munich Re to review Trans Mountain contract
    Carrier Management · 2020-07-23

Communities and civil society

Connected cases

Related matters, and cases linked to this one through the same organisations, with the role each played in both.
Terms used on this page

Insurance

Captive insurer, self-insurance
A company covering its own risks, either directly or through an insurance company it owns.
Hull insurance
Insurance on a ship itself, covering damage to or loss of the vessel.
Non-renewal
An insurer's decision not to renew a policy when it expires.
Reinsurance
Insurance bought by insurers to pass part of their own risk to other companies.
Underwriter
An insurer, or a person at an insurer, who assesses a risk and decides whether and on what terms to insure it.

Law and courts

Arbitration
A private dispute process in which an appointed arbitrator, instead of a court, decides the case.

Bonds and banking

Guarantee
A commitment by a third party, often a development bank, to pay if the borrower does not.

Institutions

DFC
The US International Development Finance Corporation, a government agency that lends to and insures private projects abroad.
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