Chubb Insurance has started insuring coal once again, just about five years after pledging to withdraw from the sector according to a report by the Bureau of Investigative Journalism (BIJ).
After committing to stop insuring coal power in 2019, Chubb is now the lead reinsurer for a Vietnamese coal power company.
The BIJ report said the Chubb's coal policy says it does not underwrite new risks for companies generating more than 30% of their energy from the fuel. But 100% of the power produced by the Vietnamese company comes from coal.
Chubb currently also faces huge payouts from damage caused by the LA wildfires, which were made more violent by climate change.
In 2019 announcing its annual coal policy, Chubb's CEO Evan Greenberg had said, "Chubb recognises the reality of climate change and the substantial impact of human activity on our planet...The policy we are implementing today reflects Chubb's commitment to do our part as a steward of the Earth."
The BIJ report quoting an industry insider said Chubb offered the policy at a substantial discount to the premium charged on the same project last year, giving a clear signal that it is moving back into coal.
US shareholder advocacy group As You Sow, says that, if true, this is “egregious” and it “would be very concerned if Chubb were this blatantly breaking their commitment”.