Insurance is key to propping up the military regime
This week Insurance Times reported that a leading human rights organisation was forming an investigative team to expose UK insurers operating in Burma.
The organidation – the Burma Campaign— has said that pulling insurance cover from the country will help speed the collapse of the contentious military regime.
Over the last few years, the organization has placed several UK insurance companies on its so-called “dirty list” but Burma Campaign’s director Mark Farmaner said insurers were notoriously tight-lipped about their involvement in the country.
Painting an accurate picture of which insurers have financial ties to Burma and in what classes of business has been exceptionally difficult for the human rights organization. This is why they say it’s essential to form a team with inside knowledge of the industry and its players.
With the focus on implementing an investigative team, the question is, how many insurers does the organization expect to find?
Although it’s difficult to estimate, Farmaner suspects the answer is many.
Insurance and reinsurance makes the economy tick and with many product lines, UK insurers have the required expertise.
Currently Burma’s state-owned airline has grounded many of its flights after a London-based insurer removed cover claiming the planes were not fully covered for “war and allied perils.”
The decision followed September’s bloody demonstrations, that left about 10 people dead.
The Burma Campaign applauded the insurer’s removal of coverage claiming trade unions had been calling for such a move for quite some time.
Farmaner said: “If the insurance industry were to cease providing cover for Burma, the regime would be plunged into immediate crisis.”
Many of the UK insurers known to have connections with Burma, have reinsurance contracts in the country.
Broker Willis said although it does not have any employees or operations in Burma, it provides reinsurance renewal placement services on marine hull and cargo.
Lloyd’s also writes some reinsurance business in Burma but said it’s monitoring the current political situation.
Recent EU-imposed sanctions are unlikely to an impact on existing operations in Burma which is why Farmaner said it is imperative to exert pressure on insurers.
When exposed, they will be placed on the Burma Campaign’s dirty list.
Companies that refuse to deal with Burma or choose to cut ties with the country are lauded on the Campaign’s “clean list”.
