Chubb will no longer insure coal.
In yet another sign of the unsustainability of coal, on Monday Chubb became the first US insurer to announce a policy to ditch coal. This is a big deal -- Chubb is the largest commercial insurance company in the US, and this move sends a signal that insuring coal isn’t just the wrong thing to do for our climate but also bad for business. This move came after significant pressure from leading climate and consumer-rights organizations that make up the Insure Our Future campaign (of which the Sierra Club is a member).
Chubb is the world's largest publicly traded property and casualty insurance company and the largest commercial insurer in the US -- so you can see why this is huge news for everyone working to move Beyond Coal worldwide. Chubb announced it will stop insuring new coal plants and phase out insurance for coal mines by 2022. It will also stop insuring utilities that generate more than 30% of their electricity from coal. Not only is coal a filthy environmental hazard that threatens public health, but it’s also financially unviable, as we’re seeing cities nationwide switch to clean energy and companies internationally announcing clean breaks from coal.
The momentum to move beyond coal is growing, and the insurance industry knows it. Just this week, we announced US coal plant retirement #291 -- the Gibbons Creek plant in Texas. And just last week, the US Energy Information Administration announced that in April, for the first time in history, the US got more electricity from renewables than from coal.
Coal is becoming uninsurable worldwide. Fifteen European and Australian insurance companies already restrict insurance to the coal industry, and now the US industry is joining this global trend.
Since September, Insure Our Future has been calling on US insurers to stop insuring and investing in coal and tar sands -- and instead support the transition to a clean energy future. Insurance companies have a unique role to play in this transition because fossil fuel companies rely on insurers to offload the risks associated with dirty energy. Without insurance coverage, new coal projects cannot be built, and existing projects will have to be phased out. As the doors of more insurance companies close to the coal industry, it’s clear that coal isn’t just a threat to our climate and public health -- it’s an economic loser as well.
We applaud Chubb for making this commitment, and we’ll pressure other US insurance companies to follow their example.
The insurance industry risks being on the hook for trillions of dollars in damages linked to climate change -- from rising seas to wildfires and storms. Insurers are well aware of that danger, and also well aware that the markets and the public are turning away from coal, which could leave them holding the bag for an obsolete industry. Continuing to insure coal projects simply makes no sense for the insurance industry in a warming world.
Worldwide, insurance companies must continue taking a hard look at their fossil fuel investments. We will keep the pressure on to move them away from these dangerous industries that threaten not only the insurance industry’s bottom line but the future of our planet and the safety of our families. Grassroots activists will lead the way -- join us.