Chubb Will No Longer Invest in Coal: Truthout

Insurance industries provide coverage against disaster to all types of industries, complex equipment and operations. Swiss insurance company Chubb has announced that it will no longer underwrite risks related to construction and operation of new coal-fired plants. Chubb “will not underwrite new risks for companies that generate more than 30% of revenues from thermal coal mining … [and] will phase out coverage of existing risks that exceed this threshold by 2022,” reports Elana Sulakshana for Independent Mdia Institute and Truthout. “This environmental victory follows a growing campaign that has been pressuring the insurance industry on climate change, building on the global divestment movement to pressure financial institutions to cut off their support of fossil fuels.” Other insurers, including Liberty Mutual and AIG, still insure such operations. Overall, the insurance industry has monitored climate change risks since the 1970s. Still, environmentalists question how the insurance industry can both provide protection against fires, floods and other disasters while investing in that same industry. Costs of disasters are passed on to all policy holders and Sulakshana urges individuals to express concerns to insurance companies and question costs. – YaleGlobal

Chubb Will No Longer Invest in Coal: Truthout

Climate activists press businesses to reconsider investing in fossil fuels; major insurer Chubb sets new limits on underwriting risks of coal-fired plants
Elana Sulakshana
Tuesday, September 24, 2019

Read the article from Truthout about Chubb setting new limits on coverage of coal-fired operations.

  “Disclosure of climate-related financial information is a prerequisite for financial firms not only to manage and price climate risks appropriately but also, if they wish, to take lending, investment or insurance underwriting decisions based on their view of transition scenarios.” – G-20’s Financial Stability Board Task Force on Climate-related Financial Disclosures

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