New Delhi - Two of the world's leading insurance companies – Chubb and XL insurance – will stop business activities in Burma, weeks after a campaign group – Burma Campaign UK – listed the companies as those financing the military rulers through their business operations.
The two companies' announcement to stop working in Burma came three weeks after the release of a report titled 'Insuring Repression' by the Burma Campaign UK, which highlighted how insurance companies have facilitated the flow of billions of dollars to the Burmese regime.
The BCUK, in a statement released on Tuesday, said "The companies, XL and Chubb, separately announced the withdrawals in statements to the campaign."
XL Capital, in its official statement sent to Mizzima said, it had decided not to write any insurance of Burmese entities going forward, and "does not seek to insure Burmese companies or operations of companies in Burma."
XL Capital Ltd is a UK financial services company having more than 3,500 employees and branch offices in Africa, Asia, Australia, Europe, North and South Americas. Its main businesses are casualty and property insurance and reinsurance.
Chubb Corporation of the United States, however, said it was not withdrawing from Burma because of the BCUK's report but had long stopped operations in military-ruled Burma.
"For at least 11 years, Chubb has had in effect a policy that bars its member companies from maintaining an office in Burma, directly writing insurance in Burma, providing insurance into Burma from outside the country or entering into any transaction with the government of Burma," Chubb Corp said in a press statement.
Chubb Corp is the 10th largest property and casualty insurer in the United States.
While welcoming the two companies' decision to stop working in Burma, the BCUK's Campaigns Officer Johnny Chatterton said it is a shame for Lloyd's of London, which has two of its members still involved in Burma.
"This is a major embarrassment to Lloyd's of London, they have never taken this issue seriously and don't see any problem with helping finance Burma's brutal dictatorship," said Chatterton, in the statement.
The BCUK said Lloyd's of London has not officially responded to its report but has admitted that its members are active in the Burmese shipping and aviation sectors.
In its report, the BCUK listed 16 insurance companies of being involving in Burma. The list includes Lloyd's of London, Hannover Re, Catlin, Atrium, XL, Tokio Marine, Sompo Japan and Mitsui Sumitomo.
Maung Maung, General Secretary of the Federation of Trade Unions Burma said he welcomed the news of XL and Chubb pulling out of Burma but strongly condemned other companies that are still involved in Burma.
"Insurance companies are facilitating trade and investment in Burma, filling the pockets of the generals and helping keep them in power," Maung Maung said.
"…we strongly condemn all insurers that remain involved in our military junta run country. They help keep the generals in power, and condemn Burma's 50 million people to lives of poverty and fear. There is no excuse for the likes of Lloyd's of London being involved. They are helping to fund a brutal dictatorship," he added.
