Full Capacity: Australia’s coal industry faces climate reckoning

October 10 2026 by

Welcome to Full Capacity, a weekly briefing on all the most important developments of the past week with a personal take on the news from our editor-in-chief, Mithun Varkey, delivered to your inbox every Saturday.    

IAN Exclusive. MS Amlin is in talks with investors to launch a Singapore-domiciled full sidecar for 2027 within the Phoenix vehicles, with an initial target size of US$40-50 million, APAC CEO William Ho told InsuranceAsia News.

Legal recourse. IAG and RAC have challenged the ACCC’s decision to block IAG’s US$940 million proposed acquisition of RAC Insurance in the Australian Competition Tribunal.

They contend the regulator used the wrong legal test and wrongly concluded the deal would harm competition.

New capacity. Awbury Group has begun underwriting Japanese business, marking the firm’s entry into the Japanese credit and financial risk market.

M&A spotlight. South Korea’s OK Financial Group has signed a share purchase agreement with the Korea Deposit Insurance Corporation (KDIC) to acquire Yebyeol Insurance. The deal includes US$737 million KDIC financial support.

Meanwhile, InsuranceAsia News exclusively reported that Meritz Fire & Marine has denied reports that it is preparing to sell its 51% stake in Indonesian JV Meritz Korindo, after South Korean media reported that the insurer was in talks to exit its only foreign business.

Moving ahead. India’s Bajaj Finserv is pressing ahead with its reinsurance plans, naming former GIC Re chairman Ramaswamy Narayanan to head the new venture.

Deepening losses. Natural disaster-related insurance claims under South Korea’s three major publicly supported insurance schemes climbed to US$1.17 billion in 2025, extending a three-year upward trend.

Digging a hole

In a major win for climate activists, the Australian High Court ruled against the proposed expansion of the Mount Pleasant coal mine in New South Wales, upholding a first-of-its-kind environmental challenge.

But the decision is likely to prove to be the beginning of a much larger political, legal and commercial fight.

Crucially, the judgment held that planning authorities are legally required to consider the climate impact of Scope 3 emissions, they are also required to consider how to mitigate the greenhouse gas emissions that would be generated by the mine when the coal is sold and burnt overseas.

The ruling rejected the idea that use of fossil fuels was someone else’s problem when they are emitted overseas.

The judgment noted that the “impact of greenhouse gas emissions is the same, regardless of how they are categorised”.

In the case of the Mount Pleasant mine extension, downstream emissions accounted for 98% of its estimated climate footprint.

This gives pause to the energy industry in Australia, one of the world’s largest fossil fuel exporters.

The energy industry is concerned that effects could be felt in other parts of the country, including the mining hubs of Western Australia.

While a landmark win for climate activists, the judgment will see backlash from the industry and the political establishment.

Mining groups will argue that Australia cannot solve a global emissions problem by imposing unilateral restrictions on exports.

That argument will resonate with parts of the political establishment. The opposition Coalition has already called for the removal of net-zero targets and other regulatory mechanisms.

The judgment will likely also have impacts beyond Australia, especially with Scope 3 emission rules kicking in across most jurisdictions between 2026 and 2028.

The judgment will be watched closely by regulators, courts, lenders, investors and insurers elsewhere.

The principle that shifts accountability for emissions up the value chain will be uncomfortable for energy companies. It may also create difficult questions for financial institutions.

Insurers and reinsurers have spent years refining their approaches to financed emissions, underwriting restrictions and transition plans. A legal environment that requires the downstream consequences of projects to be considered could intensify scrutiny of the capital supporting them.

But the legal and political landscape has shifted.

People moves

Aviso Specialty has brought in Marsh veteran Eric Wojcik to build out its new capital solutions division.

Lockton has appointed Kenichiro Miki as a senior consultant for its Japan business in Singapore.

Axa XL has promoted Paul Gardner to Asia underwriting manager for political risk, credit and bond.

Everest has named Adrian Di Pasquale financial lines director for wholesale and specialty across Asia Pacific.

Do check out our weekly people move round-up to stay up to speed on the most important appointments in the region. 

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