Chubb has announced that it 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. This announcement is in line with the insurer's new policy concerning coal-related underwriting and investment.

With the new policy, insurance coverage for existing coal-plant risks that exceed this threshold will be phased out by 2022, and for utilities beginning in 2022.  Moreover, the insurer 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. Making the transition to a low-carbon economy involves planning and action by policymakers, investors, businesses and citizens alike," said Chubb chairman and CEO Evan Greenberg.

Major provisions of the policy are:

• No underwriting of 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 as well as taking into account the insured's commitments to reduce coal dependence
• No underwriting of new risks for companies that generate more than 30% percent of revenues from thermal coal mining.  The insurer will phase out coverage of existing risks that exceed this threshold by 2022
• No underwriting of new risks for companies that generate more than 30% of their energy production from coal.  The insurer will phase out coverage of existing risks that exceed this threshold beginning in 2022, taking into account the viability of alternative energy sources in the impacted region 
• The insurer will not make new debt or equity investments in companies that generate more than 30% of revenues from thermal coal mining or that generate more than 30% of energy production from coal
• The coal policy is expected to have a de minimis impact on premium revenues and no impact on investment performance