Property and casualty insurance company Chubb Ltd. has adopted a new policy concerning coal-related underwriting and investment. 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% of their revenues from 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.
“Chubb recognizes the reality of climate change and the substantial impact of human activity on our planet,” said Chairman and CEO of Chubb Evan G. Greenberg. “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.”
Exceptions for new coal-fired plants will be considered until 2022 in regions that do not have near-term alternative energy sources, and taking into account the insured’s commitments to reduce coal dependence, the company said.
Chubb will phase out coverage of existing risks that exceed more than 30% of their energy production from coal beginning in 2022, taking into account the viability of alternative energy sources in the impacted region.
The company said the new policy was expected to have a minor impact on premium revenues and no impact on investment performance.