The United States is facing a nationwide, climate-related insurance crisis. Global insured losses from natural catastrophes in 2023 exceeded $100 billion for the fourth consecutive year.[1] Premiums nationwide rose 34% between 2017 and 2023,[2] with prices increasing at a rate 40% faster than inflation since 2017.[3] Insurance coverage has also declined in critical markets. In 2023, 12% of homeowners lacked insurance, up from 5% four years earlier, as states like California and Florida become uninsurable due to climate disasters.[4]

Chubb’s underwriting income for its personal Property & Casualty segment decreased from 2021 to 2023, despite the company increasing its direct written premiums over the same time period.[5] The Financial Stability Oversight Council notes that insurers’ decisions to not renew policies in climate-impacted regions increases the government, investors, and other financial institutions’ exposure to climate risk.[6]

Meanwhile, Chubb continues to invest in and underwrite high greenhouse gas (GHG) emitting activities, which amplify the frequency and severity of these natural catastrophes and increase financial risk. Chubb is reported as having $898 million invested in fossil fuels[7] and is reported to be the fourth largest fossil fuel insurer globally in 2022, providing $550 to $850 million of fossil fuel related insurance.[8]

Chubb does not disclose emissions associated from its investments or insurance activities. Thus, shareholders are left uncertain about Chubb’s exposure to climate risks and the actions, if any, it is taking to reduce such risks. Standards and methodologies exist to quantify and report such emissions. The Partnership for Carbon Accounting Financials released its Global GHG Accounting and Reporting Standard for Insurance Associated Emissions two years ago.[9] This methodology for measuring financed emissions has been available since 2019.[10]

Many of Chubb’s peers are going beyond their legal disclosure obligations to give investors a more holistic view of their financed and insured emissions. Travelers,[11] AIG,[12] and The Hartford[13] have all begun disclosing their financed emissions. Numerous other major insurers have also started disclosing investment or insurance-related emissions.