Environment & Climate Change

Chubb is an underwriting company, and the company strives to emphasize quality of underwriting. The company’s underwriting strategy is to manage risk by employing consistent, disciplined pricing and risk selection. Chubb applies the same risk management rigor to its broadly diversified investment portfolio as it does to the company’s underwriting practice. In addition, Chubb accounts for the potential impact of catastrophe and climate risks on the company’s own facilities and operations. Direct risk to Chubb’s business operations exists to the extent that increasingly frequent or severe weather events associated with climate change occur where Chubb has offices.

At Chubb, assessing and managing risk starts at the top, with senior management. Risk management at Chubb is rigorous, with processes and governance to provide checks and balances. Chubb’s global enterprise risk management (ERM) framework — which encompasses climate risk — is embraced by colleagues at all levels of the company, from the Chief Executive Officer (CEO) and Board of Directors, down to each business unit and function. It is broadly multi–disciplinary and one of its objectives is effective governance.

The potential impacts of climate change on the insurance industry are myriad and multivariate. These risks and opportunities fall broadly into three categories: physical risks and opportunities; transition risks and opportunities; and liability risks and opportunities