Chubb places 30% revenue cap on coal risksJuly 3 2019 by InsuranceAsia News Staff
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 or energy production from coal.
Coverage for existing coal-plant risks that exceed this threshold will be phased out by 2022 while 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.
“Chubb recognises the reality of climate change and the substantial impact of human activity on our planet,” said Evan Greenberg, chairman and chief executive 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.”
Chubb will not underwrite risks related to the construction and operation of new coal-fired plants. Exceptions to this policy will be considered until 2022 in regions that “do not have practical near-term alternative energy sources, and taking into account the insured’s commitments to reduce coal dependence.”
The insurer said the policy is expected to have a minimal impact on premium revenues and no impact on investment performance.
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