Advertise with Reinsurance News


Reinsurance News

Chubb recognises climate change reality, says Greenberg, pulls back from coal

1st July 2019 - Author: Matt Sheehan

Chubb has become the latest major re/insurer to adopt a climate policy that aims to phase out its exposure to coal-related underwriting and investment.

ChubbAs part of the announcement, Evan G. Greenberg, Chairman and CEO of Chubb, said that the company “recognizes the reality of climate change and the substantial impact of human activity on our planet.”

With the new policy, Chubb will no longer underwrite the construction and operation of new coal-fired plants or new risks for companies that generate more than 30% of their revenues from coal mining.

Companies that generate more than 30% of their energy production from coal will also be excluded, Chubb said.

Insurance coverage for existing coal-plant risks that exceed this threshold will be phased out by 2022, and for utilities beginning in 2022.

Additionally, Chubb will not make new debt or equity investments in companies that generate more than 30% of revenues from thermal coal mining or energy production from coal.

Exceptions to the policy may be considered in regions that do not have practical near-term alternative energy sources.

“Making the transition to a low-carbon economy involves planning and action by policymakers, investors, businesses and citizens alike,” Greenberg continued.

“The policy we are implementing today reflects Chubb’s commitment to do our part as a steward of the Earth.”

The coal policy is expected to have a minimal impact on Chubb’s premium revenues and no impact on investment performance.

Last week, Zurich Insurance Group announced a similar set of climate targets to reduce its exposure to fossil fuels and to support the framework of the UN Global Compact Business Ambition Pledge, which aims to limit the rise in global temperatures to 1.5°C.

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous article:
Aon & Oxfam launch blockchain-based insurance for farmers in Sri Lanka

Re/insurance broker Aon has partnered with Oxfam and insurtech firm Etherisc to launch a blockchain-based insurance platform for smallholder farmers...