European insurers have been pulling investments and shifting products away from coal companies for over a decade. The most recognizable of the European market leaders to do so include; Zurich Insurance Group, Allianz, AXA SA, Munich RE Group, Swiss RE AG, and Hannover RE—companies that represent over $425 billion USD in revenues/year. Until today, however, US-based insurers were content to let the market set itself, avoiding any involvement in environmental issues by altering coverage policies or price premiums. That all changed this morning, when Chubb Ltd.’s CEO and Chairman, Evan Greenberg, announced that, “Chubb recognizes the reality of climate change and the substantial impact of human activity on our planet” in a company news release. Chubb’s announcement came with the four-part, “Chubb Coal Policy”, that will expose the domestic coal industry to significant upside price risks. The announcement marks the first US insurer to institute a policy to phase out coal from investment portfolios and underwriting operations. Below are the four pillars of the policy:

New Plants: Chubb will not underwrite construction or operational risks for new coal plants, unless there is no alternative energy sources available.

Mining: Chubb will not underwrite new business risks for companies garnering 30% or more of revenues from coal mining.

Utilities: Chubb will not underwrite new risks for companies generating 30% or more of energy production from coal.

Investments: Chubb will not make debt or equity investments in companies that generate 30% or more of revenues from coal mining, or companies that generate more than 30% of energy production from coal.

The announcement comes after increasing investor pressure on public companies to make meaningful sustainability-driven business decisions