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.
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.