In a new report released in June 2022, Insure Our Future stated that coal power plants in Asia are struggling to find insurers to underwrite new policies and renew existing ones. South Korean giant KEPCO has reportedly even been forced to use small, inexperienced insurers to cover its risks.
KEPCO is also facing a decline in insurance capacity when it comes to coal-related activities. In connection with the construction of the Nghi Son 2 power plant in Vietnam, the Korean power company had signed several policies with 19 insurers in 2018. Four years later, it is left with 72% less insurance capacity.
In June 2021, KEPCO also had to use 24 insurers to cover risks related to the operation of the Cebu Naga power plant in the Philippines. Included in the list is an insurer with a credit rating below the "A" that is typically required by investors.
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