Chubb to stop insuring, investing in coal amid climate concerns

Property/casualty insurer Chubb is the latest major insurer to stop underwriting and investing in coal-related policies amid rising  climate concerns.

The company will no longer underwrite the construction and operation of new coal-fired plants or new risks for companies that generate more than 30 percent of their revenues from coal mining or energy production from coal.

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

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

The insurer has taken these steps as part of wider efforts to contribute to the global climate change. Other insurers including Zurich, Allianz, Talanx, Hannover Re have already announced their plans to scale back coal-based offerings.

Chubb noted that the coal policy is expected to have a minimal impact on premium revenues and no impact on investment performance.

"Chubb recognises the reality of climate change and the substantial impact of human activity on our planet," said Evan Greenberg, chairman and CEO of Chubb.

"Making the transition to a low-carbon economy involves planning and action by policymakers, investors, businesses and citizens alike. The policy we are implementing today reflects Chubb's commitment to do our part as a steward of the Earth."

Get all the latest re/insurance industry news with our daily newsletter -  sign up here.

More of today's news

Liberty Mutual’s Limestone Re heralds a return despite 'challenging ILS market'

Greenlight Re invests in travel insurance MGA Battleface

Alleghany unveils new CapSpecialty chief executive officer

Miller expands energy facultative reinsurance unit with Skuld hire

Markel launches new cyber cover for businesses of all sizes