Chubb Bans Coal Underwriting and Investment

Chubb is the first big US insurance firm to ban coverage for coal companies. Chubb will not sell insurance to any new coal-fired power plants or to companies that generate greater than 30 percent of their revenue through thermal coal mining.  Utilities that generate more than 30 percent of their energy from coal also will be banned from underwriting new risks. The coverage of existing coal mines will be phased out by 2022 and utilities’ coverage will be phased out beginning in 2022.  These changes were made due to increasing exposure to risks from climate change induced severity and frequency of natural disasters from wildfires and flooding to hurricanes. The new coal policy is expected to have little impact on Chubb’s premium revenues and investment performance. LATimes