Industry proposes phase-out of live animal export cover

By Rebecca Delaney

June 16 - (The Insurer) - The Fidelis Partnership and Scor are among a coalition of industry participants that has proposed a pledge to phase out providing (re)insurance coverage for live animal exports over the next 18 months.

The pledge was proposed on Ban Live Exports International Awareness Day on June 14, which marked the 10-year anniversary of an incident in which 13,000 sheep died aboard a vessel from Romania to Somalia.

The proposed pledge sets out a structured transition timeline to cease facultative coverage by December 31, 2025, with signatories also committing to cease treaty coverage by December 31, 2026.

"This timeline allows for engagement with clients and brokers, supporting the development of alternative risk transfer solutions where appropriate," Richard Coulson, deputy group chief underwriting officer and CEO, insurance at The Fidelis Partnership, told Sustainable Insurer.

"The goal is not just reducing exposure but fully exiting the space within the defined window."

Jean-Paul Conoscente, P&C CEO at Scor, said in a statement to Sustainable Insurer: "Recognising the challenges in ensuring animal welfare in livestock export, Scor has assessed its involvement in this type of business and is phasing out all exposure through Scor Business Solutions, our commercial insurance arm.

"Effective January 1, 2026, we will cease underwriting any new direct or facultative reinsurance coverage for this activity.”

Live animal exports are typically covered under marine cargo insurance, although Coulson said that this can overlap with other lines of business depending on the nature of the shipment, vessel and journey.

"Coverage may include perils associated with animal welfare in transit, such as death, injury, or delay-related losses," he said.

"Policy sizes can vary significantly depending on the volume and value of the shipment. Multiple markets are often involved in layering coverage or co-insuring. The space is relatively niche but can be competitive, particularly for ferry operators with good safety records."

Philip Lymbery, global CEO of Compassion in World Farming, said the largest livestock vessels used in EU live exports can transport around 18,000 cattle or 75,000 sheep. Journeys include lorry transportation, long sea crossings and pen enclosures.

"Will insurers continue to insure such vessels once they are aware of the poor condition of many of them?" Lymbery said.

"The average EU-approved livestock carrier can be described as a substandard ship. The average EU-approved livestock carrier is a 43-year-old vessel, polluted by asbestos, polychlorinated biphenyls and other toxic substances, built as a general cargo carrier and converted for livestock transport at the age of 30."

NON-RENEWAL

The Fidelis Partnership recently opted to non-renew a cargo and liability account for a shipping company that resumed live animal exports after a decades-long ban.

"The decision not to renew reflects a material ethical stance rather than a portfolio de-risking exercise," said Coulson.

"It accounted for a modest percentage of overall premium, but its symbolic importance as a high-profile case sends a powerful message. Decisions can shape reputations and portfolios. The expected impact includes increased pressure on carriers, further engagement with brokers, and elevated public awareness – laying the groundwork for a broader market shift."

Coulson continued that the insurance industry can play a key role in shaping industries where regulations are weak or slow to adapt.

"Insurers play a quiet but powerful gatekeeping role in global commerce. Where laws are weak or slow to evolve, underwriting standards can accelerate reform by raising the cost or reducing the feasibility of harmful practices," he said.

"By declining to insure live animal exports, insurers create operational pressure, reputational scrutiny, and signal to the market that such practices are no longer aligned with global ethical norms."

Lymbery added that uptake of the proposed pledge is projected to result in a notable decrease in the volume of live animal trade.

"If insurers refuse to insure live animal exports, we would expect there would be a substantial reduction in the volume of the trade as owners and transporters of the animals may be reluctant to send them on lengthy sea journeys without insurance in light of the risks of major losses due to fire, disease, or a ship sinking," he said.

Coulson concluded that the pledge is in its pre-launch phase, with The Fidelis Partnership having engaged with an initial cohort of insurers and brokers to sign up at launch.

"While exact numbers are still evolving due to ongoing outreach, several underwriters, brokers, and sustainability-focused MGAs have indicated support, and we welcome engagement with others who would intend to join," he said.