Chubb Limited | Interfaith Center on Corporate Responsibility

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<strong>Company:</strong>
<p>Chubb Limited</p>
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<strong>Year:</strong>
<p>2026 </p>
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<strong>Issue Area:</strong>
<p>Climate Change, Environment </p>
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<strong>Focus Area:</strong>
<p>Climate Change </p>
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<strong>Status:</strong>
<p>Filed</p>
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<h2>Resolution Text</h2>
<p><strong>WHEREAS:</strong>  The United States is facing a homeowners insurance crisis. In 2023, national insurance underwriting losses reached a 10-year high of $38 billion due to more frequent and intense weather-related disasters, inflation costs associated with rebuilding, and reinsurance price increases.[1] 2024 followed as the second-costliest year for catastrophe losses since 2005.[2]</p>
<p>The insurance industry has responded with aggressive rate increases and policy non-renewals. Between 2017 and 2023, homeowners’ premiums increased nationwide by 34% and another 10.4% in 2024.[3] Approximately 1.9 million insurance contracts have not been renewed since 2018.[4]  </p>
<p>While price hikes and non-renewals preserve short-term insurance company profitability, they threaten the sustainability of the homeowners insurance customer base. They also create risk for financial markets. Homeowners insurance enables access to mortgage loans necessary for home purchases; home sales support a range of other businesses while generating property tax revenue for local and state governments. When insurance becomes unaffordable or unavailable, home sales slow, property values decline, and cascading shocks ripple across the housing market and the broader economy. </p>
<p>One important means by which insurance companies can stem this crisis is to offset their catastrophe losses through subrogation, an industry practice where insurers pursue contributions for claim payments made from responsible third parties. Seeking contributions from responsible parties not only helps reduce costs borne by insurance companies but maintains affordable premiums and ensures that responsible parties are held accountable for the damage they cause. </p>
<p>Chubb experienced $2.4 billion in pre-tax catastrophe losses in 2024 compared with $1.8 billion in 2023.[5] Seeking compensation from parties responsible for causing climate change will allow Chubb to successfully maintain its homeowner business line and serve its customers responsibly.</p>
<p>Attribution science has developed sufficiently to assign responsibility for climate change to responsible parties.[6] It can also assess the frequency and intensity of certain types of extreme weather attributable to climate change.[7] Accordingly, recent legislative proposals in California[8] and Hawaii[9] have encouraged insurers to pursue subrogation claims against high-emitting companies for climate-related damages. </p>
<p>Chubb has not disclosed whether it is exploring opportunities to recover climate-related damages from responsible parties, even though such actions could reduce claim-related losses, preserve shareholder value, and improve insurance affordability and availability. </p>
<p>Shareholders would benefit from understanding whether management is considering this cost-recovery opportunity, the rationale for its approach, and how such strategies could affect the Company’s financial performance under various climate scenarios.</p>
<p><strong>BE IT RESOLVED:  </strong>Shareholders request that Chubb issue a third-party report assessing if and how pursuing subrogation claims for climate-related losses would benefit the Company and its insureds, omitting proprietary information, and at reasonable expense.</p>
<p>[1] https://www.insurancejournal.com/news/national/2024/03/07/763884.htm </p>
<p>[2] https://www.insurancebusinessmag.com/us/news/property/pandc-returns-to-underwriting-profit-in-2024-529406.aspx </p>
<p>[3] https://www.spglobal.com/market-intelligence/en/news-insights/articles/2025/1/us-homeowners-rates-rise-by-double-digits-for-2nd-straight-year-in-2024-87061085 </p>
<p>[4] https://www.nytimes.com/interactive/2024/12/18/climate/insurance-non-renewal-climate-crisis.html </p>
<p>[5] https://www.businessinsurance.com/chubb-q4-profit-down-amid-higher-catastrophe-losses/; A Senate Budget Committee probe revealed that climate change is driving this increasing non-renewal rate, https://www.budget.senate.gov/imo/media/doc/next_to_fall_the_climate-driven_insurance_crisis_is_here__and_getting_worse.pdf </p>
<p>[6] https://www.nature.com/articles/s41586-025-08751-3 </p>
<p>[7] https://www.nature.com/articles/s41467-023-41888-1 </p>
<p>[8] https://sd11.senate.ca.gov/news/la-turns-recovery-senator-wiener-introduces-bill-boost-insurance-affordability-allow-victims </p>
<p>[9] https://legiscan.com/HI/bill/SCR198/2025</p>

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<div class=”views-field views-field-nothing”><span class=”field-content”> Mary Zuccarello</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>As You Sow</span></div>
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<strong>Focus Area:</strong>
<p>Climate Change </p>
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<strong>Status:</strong>
<p>Filed</p>
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<h2>Resolution Text</h2>
<p>WHEREAS: Climate change exposes insurance companies to significant enterprise risks. In the first half of 2025, global insured losses from natural catastrophes were 40% higher than in the first half of 2024 and over double the 21st-century average.1<br><br>To stay profitable in the face of increasing losses, insurers are raising premiums and reducing coverage.2 A 2024 Senate Budget Committee Report predicts a collapse in property values with the potential to trigger a full-scale financial crisis.3<br><br>Chubb’s 10-K acknowledges that climate change poses “physical risks, transition risks and liability risks” that may adversely affect its operations and impact its risk modeling. It also states that “The increasing impact of climate change could affect our cost of claims, loss ratios, and financial results.”4<br><br>Chubb recognizes “its responsibility to support the transition to a low-carbon economy and to manage the risks associated with that transition” in its climate strategy.5 Chubb also notes its participation in “public engagement on climate issues with government officials, regulatory bodies, [and] climate advocacy groups” as a climate-related activity.<br><br>In 2024, Chubb spent $2,756,000 in lobbying expenditures.6 This included dues and lobbying allocations to the National Association of Mutual Insurance Companies, American Council of Life Insurers, Reinsurance Association of America, U.S. Chamber of Commerce, and the Institute of International Finance. These organizations have often lobbied against policies and regulations requesting climate-risk disclosures and transition planning that could help insurers and investors understand and be better protected against the financial consequences of climate change.<br><br>Although Chubb publishes a report listing trade association dues and lobbying allocations, current disclosures do not describe if and how Chubb identifies any misalignment between its climate strategy and its trade associations’ lobbying activities.<br><br>Regular examination of the alignment of lobbying activities with corporate public commitments and policies is an increasingly important indicator of strong corporate governance. Competitors, including Zurich Insurance, Munich Re, Aviva, and Swiss Re, either publicly describe how they align their policy engagement with their climate commitments, outline guiding principles for engagement, and/or detail their role and involvement with trade organizations.7</p>
<p>Thus, the proponent encourages Chubb to assess the alignment of its trade association activities with its climate strategy.<br><br>RESOLVED: Shareholders request that Chubb publish an annual report, at reasonable expense and omitting proprietary information, assessing whether and how Chubb is aligning its lobbying and policy influence activities and positions, both direct and indirect through trade associations, coalitions, alliances, and other organizations, with its climate strategy.<br><br>SUPPORTING STATEMENT: At the board’s discretion, the assessment may include the activities and positions analyzed and the criteria used to assess alignment.</p>
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<p>1 https://www.weforum.org/stories/2025/08/global-insurance-industry-gap/<br>2 https://www.nytimes.com/interactive/2024/12/18/climate/insurance-non-renewal-climate-crisis.html<br>3 https://www.budget.senate.gov/imo/media/doc/next_to_fall_the_climate-driven_insurance_crisis_is_here__and_getting_worse.pdf<br>4 https://s201.q4cdn.com/471466897/files/doc_financials/2024/ar/2024-Chubb-Limited-Annual-Report-Final.pdf, 26<br>5 https://s201.q4cdn.com/471466897/files/doc_financials/2024/ar/Chubb-2024-Sustainability-Report.pdf, 4<br>6 https://www.opensecrets.org/federal-lobbying/clients/summary?cycle=2024&id=D000023744<br>7 https://www.munichre.com/en/company/about-munich-re/lobbying.html; https://www.zurich.com/sustainability/strategy-and-reporting/policy-engagement; https://static.aviva.io/content/dam/aviva-corporate/documents/socialpurpose/pdfs/2024-transition-plan.pdf, 26; https://www.swissre.com/dam/jcr:b17dff9d-c026-46e6-b3f9-a0839fb5ed65/2024-sustainability-report-en.pdf, 107-108</p>

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<h4>Resolution Details</h4>
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<strong>Company:</strong>
<p>Chubb Limited</p>
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<strong>Year:</strong>
<p>2025 </p>
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<strong>Issue Area:</strong>
<p>Climate Change, Environment </p>
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<strong>Focus Area:</strong>
<p>Climate Change </p>
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<strong>Status:</strong>
<p>Filed</p>
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<h2>Resolution Text</h2>
<p>WHEREAS: 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, upfrom 5% four years earlier, as states like California and Florida become uninsurable duetoclimate disasters.4</p>
<p>Chubb’s underwriting income for its personal Property & Casualty segment decreasedfrom 2021 to 2023, despite the company increasing its direct written premiums over thesame 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</p>
<p>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 fuels7 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</p>
<p>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 AccountingFinancials released its Global GHG Accounting and Reporting Standard for Insurance AssociatedEmissions two years ago.9 This methodology for measuring financed emissions has been available since 2019.10</p>
<p>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 Hartford13 have all begun disclosing their financed emissions. Numerous other major insurers have also started disclosing investment or insurance-related emissions.</p>
<p>BE IT RESOLVED: Shareholders request that Chubb issue a report, at reasonable cost and omitting proprietary information, disclosing the GHG emissions from its underwriting, insuring, and investment activities.</p>
<p>1 https://www.ft.com/content/28bbd550-76f2-4207-8d25-91f8be26972d</p>
<p>2 https://www.insurancejournal.com/news/national/2024/09/26/794409.htm</p>
<p>3 https://www.newyorker.com/news/the-financial-page/the-home-insurance-crisis-that-wont-end-after-hurricane-season</p>
<p>4 https://www.npr.org/2024/03/03/1233963377/auto-home-insurance-premiums-costs-natural-disasters-inflation</p>
<p>5 https://s201.q4cdn.com/471466897/files/doc_financials/2024/ar/Chubb-Limited-2023-Annual-Report-FINAL.pdf, p.59</p>
<p>6 https://climateandcommunity.org/research/insurance-financial-stability/</p>
<p>7 https://investinginclimatechaos.org/data</p>
<p>8 https://global.insure-our-future.com/wp-content/uploads/sites/2/2023/11/IOF-2023-Scorecard.pdf, p.13</p>
<p>9 https://carbonaccountingfinancials.com/en/newsitem/pcaf-launches-the-global-ghg-accounting-and-reporting-standard-for-insurance-associated-emissions</p>
<p>10 https://carbonaccountingfinancials.com/en/standard#a</p>
<p>11 https://sustainability.travelers.com/iw-documents/sustainability/Travelers_TCFDReport2023.pdf, p.34</p>
<p>12 https://www.aig.com/content/dam/aig/america-canada/us/documents/about-us/report/aig-sustainability-report-2023.pdf, p.36</p>
<p>13 https://ewcstatic.thehartford.com/thehartford/the_hartford/files/Comm/cdp-project-submission.pdf, p.223</p>
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<div class=”views-field views-field-nothing”><span class=”field-content”> Giovanna Eichner</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Green Century Capital Management, Inc.</span></div>
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<div class=”views-field views-field-nothing”><span class=”field-content”> David Shugar</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>As You Sow</span></div>
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Resolution Details

Company:

Chubb Limited

Year:

2024

Issue Area:

Climate Change, Environment

Focus Area:

Climate Change

Status:

Challenged

Resolution Text

WHEREAS: In the United States, annual insured losses from extreme weather now routinely approach $100 billion, compared to $4.6 billion in 2000.1 The InsuranceInformation Institute has noted that “catastrophe losses in the first half of 2023 were the highest in over two decades.”2 Swiss Re reports that a 3.2 degree increase in global average temperature will result in an expected drop in GDP output of 18% by 2050.3

Shareholders are concerned that Chubb is not reducing the climate footprint of its insured, invested, and underwriting activities in alignment with global 1.5oC goals to help reduce growing climate risk. Chubb’s 2023 Q1 pre-tax catastrophe losses were $458 million, compared to $333 million last year.4 Chubb’s Global Reinsurance segment moved from underwriting profits of $98 million in 2019 to $52 million in 2020 to underwriting losses of $69 million in 2021 and $24 million in 2022.5

Chubb is actively amplifying the problem by continuing to invest in, and underwrite, high greenhouse gas (GHG) emitting activities. Ceres reports that of the 16 largest U.S. property and casualty insurers, Chubb is the fifth largest investor in fossil fuel-fuel related assets, with $3 billion invested as of 2019.6

Chubb was also the fourth largest fossil fuel insurer globally in 2022, providing $550 to $850 million of fossil fuel related insurance.7 Chubb is reported as providing coverage to the Freeport liquefied natural gas (LNG) terminal in Texas and Louisiana. LNG export facilities lock in decades of high carbon energy production, even while climate related catastrophes cause insurance premiums to skyrocket or insurance to become unavailable in growing areas of the US.8

Chubb has not given investors sufficient information on the magnitude and extent of its insured, invested, and underwriting emissions. Standards and methodologies exist to quantify and report such emissions. In 2022, the Partnership for Carbon Accounting Financials launched its Global GHG Accounting and Reporting Standard for Insurance Associated Emissions.9

Chubb is behind peers in reporting its emissions. Both Travelers10 and AIG11 have begun disclosing their financed emissions. European insurers including Swiss Re, Munich Re, Allianz, and Aviva have begun disclosing investment related emissions.12 Swiss Re also discloses its insurance associated emissions.13 Aviva this year plans to disclose and set 2030 targets for its insured emissions.14

BE IT RESOLVED: Shareholders request that Chubb issue a report, at reasonable cost and omitting proprietary information, disclosing the GHG emissions from its underwriting, insuring, and investment activities.

SUPPORTING STATEMENT: As necessary and at management discretion, Chubb can initially base reporting on reasonable emissions estimates and provide a timeline for disclosures.

1 https://www.iii.org/table-archive/20922

2 https://www.businesswire.com/news/home/20230803387647/en/Inflation-High-CAT-Losses-to-Lead-to-2023-Underwriting-Loss-for-PC-Industry-But-Recession-Likely-Avoided-This-Year-New-Triple-IMilliman-Report-Shows

3 https://www.swissre.com/media/press-release/nr-20210422-economics-of-climate-change-risks.html

4 https://www.insurancejournal.com/news/national/2023/04/26/717942.htm

5 https://s201.q4cdn.com/471466897/files/doc_financials/2022/ar/2021-Chubb-Annual-Report.pdfp.59

6 https://www.ceres.org/sites/default/files/reports/2023-08/Changing%20Climate%20for%20the%20Insurance%20Sector_%20Research%20and%20Insights.pdfp.21

7 https://global.insure-our-future.com/wp-content/uploads/sites/2/2023/11/IOF-2023-Scorecard.pdfp.13

8https://lailluminator.com/2023/07/24/lng_insurance/

9 https://carbonaccountingfinancials.com/en/newsitem/pcaf-launches-the-global-ghg-accounting-and-reporting-standard-for-insurance-associated-emissions

10 https://sustainability.travelers.com/iw-documents/sustainability/Travelers_SustainabilityReport2022.pdfp.24

11 https://www.aig.com/content/dam/aig/america-canada/us/documents/about-us/report/aig-esg-report_2022.pdfp.32

12 https://www.swissre.com/dam/jcr:ec822a14-a4d7-4b6b-b0e2-49ae6036058c/2022-financial-report-doc-en.pdf#page=148 p. 175; https://www.munichre.com/content/dam/munichre/contentlounge/website-pieces/documents/MunichRe-Sustainability-Report_2022.pdf/_jcr_content/renditions/original./MunichRe-Sustainability-Report_2022.pdf p.37; https://www.allianz.co.uk/content/dam/onemarketing/azuk/allianzcouk/about-us/docs/pdfs/social-responsibility/Allianz_Group_Sustainability_Report_2021-web.pdf p.85; https://www.aviva.com/sustainability/reporting/climate-related-financial-disclosure/ p.67

13 https://www.swissre.com/sustainability/approach/metrics-targets/net-zero-insurance.html14https://www.aviva.com/sustainability/reporting/climate-related-financial-disclosure/ p.45

Resolution Details

Company:

Chubb Limited

Year:

2024

Issue Area:

Human Rights & Worker Rights

Focus Area:

Race Discrimination

Status:

Filed

Resolution Text

WHEREAS: Pay inequities persist across race and gender and pose substantial risks to companies and society. Black workers’ median annual earnings represent 77 percent of white wages. The median income for women working full time is 84 percent that of men. Intersecting race, Black women earn 76 percent and Latina women 63 percent.1 At the current rate, women will not reach pay equity until 2059, Black women in 2130, and Latina women in 2224.2

Citigroup estimates closing minority and gender wage gaps 20 years ago could have generated 12 trillion dollars in additional national income. PwC estimates closing the gender pay gap could boost Organization for Economic Cooperation and Development (OECD) countries’ economies by 2 trillion dollars annually.3

Actively managing pay equity is associated with improved representation. Diversity in leadership is linked to superior stock performance and return on equity.4 Minorities represent 31 percent of Chubb’s workforce and 16 percent of executives. Women represent 55 percent of the workforce and 28 percent of executives.5

Best practice pay equity reporting consists of two parts:

1. unadjusted median pay gaps, assessing equal opportunity to high paying roles,

2. statistically adjusted gaps, assessing whether minorities and non-minorities, men and women, are paid the same for similar roles.

Chubb does not report quantitative unadjusted or adjusted pay gaps. About 50 percent of the 100 largest U.S. employers currently report adjusted gaps, and an increasing number of companies disclose unadjusted gaps to address the structural bias women and minorities face regarding job opportunity and pay.6

Racial and gender unadjusted median pay gaps are accepted as the valid way of measuring pay inequity by the United States Census Bureau, Department of Labor, OECD, and International Labor Organization. The United Kingdom and Ireland mandate disclosure of median gender pay gaps.7 For its United Kingdom employees, Chubb reports a median hourly pay gap of 29 percent and bonus gender pay gap of 48 percent.8

RESOLVED Shareholders request Chubb report on both quantitative median and adjusted pay gaps across race and gender, including associated policy, reputational, competitive, and operational risks, and risks related to recruiting and retaining diverse talent. The report should be prepared at reasonable cost, omitting proprietary information, litigation strategy and legal compliance information.

Racial/gender pay gaps are defined as the difference between non-minority and minority/male and female median earnings expressed as a percentage of non-minority/male earnings (Wikipedia/OECD, respectively).

SUPPORTING STATEMENT: An annual report adequate for investors to assess performance could, with board discretion, integrate base, bonus and equity compensation to calculate:

• percentage median and adjusted gender pay gap, globally and/or by country, where appropriate

• percentage median and adjusted racial/minority/ethnicity pay gap, US and/or by country, where appropriate

1 https://www.census.gov/data/tables/time-series/demo/income-poverty/cps-pinc/pinc-05.html – par_textimage_24

https://static1.squarespace.com/static/5bc65db67d0c9102cca54b74/t/622f4567fae4ea772ae60492/1647265128087/Racial+Gender+Pay+Scorecard+2022+-+Arjuna+Capital.pdf

3 Ibid.

4 Ibid.

5 https://www.chubb.com/content/dam/chubb-sites/chubb/about-chubb/diversity-equity-inclusion/accountability/pdf/chubb-2022-eeo-1-data.pdf

6 https://diversiq.com/which-sp-500-companies-disclose-gender-pay-equity-data/

7 https://static1.squarespace.com/static/5bc65db67d0c9102cca54b74/t/622f4567fae4ea772ae60492/1647265128087/Racial+Gender+Pay+Scorecard+2022+-+Arjuna+Capital.pdf

8 https://www.chubb.com/uk-en/about-us-uk/pay-gap-reports.html

Resolution Details

Company:

Chubb Limited

Year:

2023

Issue Area:

Climate Change

Focus Area:

Climate Change, Climate Financing

Status:

Vote

Vote Percentage:

28.90%

Chubb Limited Measure, Disclose & Reduce GHG Emissions Associated with Underwriting – Proxy Memo

23.CB_.1+Chubb+Proxy+Memo_WEB.pdf

Resolution Text

WHEREAS: Insurance companies have a critical role to play in meeting the Paris Agreement’s 1.5 degrees Celsius (1.5oC) goal, which will require net zero greenhouse gas (GHG) emissions by 2050. Projections have found that limiting global warming to 1.5oC versus 2 degrees will save $20 trillion globally by 2100, [1] while exceeding 2 degrees could lead to climate damages ranging from 21 to 563 trillion.[2] According to Swiss Re, failure to meet the 1.5oC goal may shrink global economic output by 11 to 14 percent.[3]

The insurance industry is under increasing pressure to address its contributions to climate change. The United Nations Environment Program Finance Initiative has underscored the critical role of insurance companies in meeting the 1.5oC goal. Exemplifying this growing pressure, legislation was passed in Connecticut requiring regulators to incorporate emissions reduction targets in their supervision of insurers. [4]

Shareholders are concerned that Chubb is not adequately reducing the climate footprint of its insurance-related activities. The company’s pre-tax catastrophe losses were almost $1.2 billion in the third quarter of 2022, with $975 million resulting from claims related to Hurricane Ian alone.[5] This follows a larger global trend: According to Munich Re, natural disasters caused losses of $280 billion in 2021, up from $210 billion in 2020 and $166 billion in 2019.[6]

Chubb is a climate laggard in the global insurance sector, scoring near the bottom in a survey of the 30 largest global insurers.[7] In contrast, peers are beginning to take action.[8] Twenty-nine global insurers (representing more than 14% of world premium volume globally) have joined the United Nations’ Net Zero Insurance Alliance, committing to transition emissions from their insurance and reinsurance underwriting portfolios to net zero by 2050.[9]

While Chubb has set Scope 1 and 2 emissions reduction targets for its energy use and operational emissions and has certain coal related policies, Chubb has not adopted targets aligned with the Paris Agreement’s 1.5oC goal for its underwriting, insuring, and investment activities. Chubb appears to instead rely on governments “to develop and implement climate change solutions.”[10]

Insurers’ activities can contribute to systemic climate risk to the global economy, investor portfolios, and insurers’ profitability. By setting and disclosing medium and long-term GHG emissions reduction targets across its underwriting, insuring, and investment activities, including net zero ambitions, Chubb can assure investors that management is addressing its quickly growing climate risk, reducing its climate impact, and building on climate-related opportunities.

BE IT RESOLVED: Shareholders request that Chubb issue a report, at reasonable cost and omitting proprietary information, disclosing 1.5oC aligned medium and long-term GHG targets for its underwriting, insuring, and investment activities.

SUPPORTING STATEMENT: Additionally, shareholders recommend the report disclose, at management discretion, a general timeline on which Chubb will:

measure the emissions of its highest emitting business sectors; and
set Paris-aligned 1.5oC targets for its highest emitting business sectors.

[1] https://www.nature.com/articles/d41586-018-05219-5

[2] https://www.nature.com/articles/s41467-020-18797-8/

[3] https://www.swissre.com/dam/jcr:e73ee7c3-7f83-4c17-a2b8-8ef23a8d3312/swiss-re-institute-expertise-publication-economics-of-climate-change.pdf

[4] https://www.businessinsurance.com/article/20210617/NEWS06/912342605/Connecticut-bill-calls-for-regulation-of-insurers%E2%80%99-climate-risks

[5] https://www.artemis.bm/news/chubb-reports-1-2bn-of-cat-losses-for-q3-reinsurance-partners-to-take-share/

[6] https://www.munichre.com/en/company/media-relations/media-information-and-corporate-news/media-information/2022/natural-disaster-losses-2021.html

[7] https://insure-our-future.com/wp-content/uploads/2022/11/SP-IOF-2022-Scorecard-v0.8-online-1.pdf p.11

[8] https://insure-our-future.com/scorecard

[9] https://www.unepfi.org/net-zero-insurance/

[10] https://about.chubb.com/content/dam/chubb-sites/chubb/about-chubb/citizenship/environment/pdf/Chubb-Our_Climate_Change_Policy.pdf

Resolution Details

Company:

Chubb Limited

Year:

2023

Issue Area:

Human Rights & Worker Rights

Focus Area:

Indigenous Peoples/FPIC, Risk Management

Status:

Vote

Vote Percentage:

16.50%

Resolution Text

Under the UN Guiding Principles on Business and Human Rights, companies are expected to conduct human rights due diligence to meet the corporate responsibility to respect human rights. The UN Declaration on the Rights of Indigenous Peoples recognizes the rights of Indigenous Peoples to self- determination, territories, and cultural practices, and establishes that entities must seek Free Prior and Informed Consent (FPIC) of Indigenous Peoples related to any projects that may impact their rights.

Chubb may be exposed to environmental and social risk through its underwriting and financing activities. The Principles for Sustainable Insurance, signed by 135 insurers representing $15 trillion in assets, 1 serves as a framework to address environmental, social and governance (ESG) risks and opportunities. Chubb is not a signatory. Several companies incorporate ESG in their underwriting practice, including AIG,2 Munich Re,3 and Zurich.4 Allianz,5 AXIS Capital,6 and Swiss Re7 assess FPIC. Seventeen insurers have committed not to insure oil and gas projects in the Arctic National Wildlife Refuge (Arctic Refuge) in Alaska, noting potential negative impacts on Indigenous Peoples, biodiversity, and caribou.8

Projects that may negatively impact the rights, culture, or territories of Indigenous Peoples may face public opposition and increase reputational risk. Chubb is facing public scrutiny over the potential risk associated with the Arctic Refuge. The Gwich’in Steering Committee has written to Chubb asking it to commit not to insure projects in the Arctic Refuge, to protect its communities, culture, and way of life.9 Investor expectations on Indigenous Rights are increasing, including that companies respect FPIC in business decisions that impact Indigenous Peoples.10

Identification and evaluation of all relevant data or risk factors, including exposure to potential human rights or biodiversity impacts or losses that are relevant in the context of an activity, are necessary to accurately assess the risk exposure and appropriately set pricing, coverage, and exclusions. While Chubb provides some information on its evaluation of environmental risks in underwriting and financing, Chubb lacks disclosure on how it evaluates human rights risks, in particular the rights of Indigenous Peoples, in underwriting. This may expose the company to mispricing of risk or failing to identify potential social and human rights risks associated with its business activities, which may lead to increased costs, project cancelations, or negative human rights outcomes.

Resolved: Shareholders request that the Board of Directors publish a report, describing how human rights risks and impacts are evaluated and incorporated in the underwriting process. The report should be prepared at reasonable cost and omit proprietary information.

Supporting Statement: At company discretion, the proponents recommend the report include:

The extent to which Free, Prior and Informed Consent, as articulated in the United Nations Declaration on the Rights of Indigenous Peoples, is considered or evaluated in the underwriting process; and

The company’s stakeholder engagement process, such as participating stakeholders, key recommendations made, and actions taken to address such recommendations.

1 https://www.unepfi.org/insurance/insurance/signatory-companies/
2 https://www.aig.com/esgreports/home/executive-summary
3 https://www.munichre.com/en/company/sustainability/human-rights.html
4 https://www.zurich.com/en/sustainability/responsible-investment/-/media/project/zurich/dotcom/sustainability/docs/mitigating-esg-risks-in-underwriting-and-investment-management.pdf
5 https://www.allianz.com/content/dam/onemarketing/azcom/Allianz_com/sustainability/documents/Allianz_ESG_I ntegration_Framework.pdf
6 https://www.axiscapital.com/docs/default-source/about-axis/axis-capital-human-rights- policy.pdf?sfvrsn=f7dfcab8_2#:~:text=We%20expect%20insureds%20to%20respect,on%20indigenous%20territories %20without%20FPIC
7 https://www.swissre.com/dam/jcr:5863fbc4-b708-4e61-acc7-6ef685461abb/esg-risk-framework.pdf
8 https://ourarcticrefuge.org/corporate-commitment-to-protect-the-arctic-refuge/
9 https://ourarcticrefuge.org/gsc-and-240-allied-organizations-urge-u-s-insurance-companies-to-meet-the- moment-with-policy-to-protect-the-arctic-refuge/
10 https://www.blackrock.com/corporate/literature/publication/blk-commentary-engagement-on-human- rights.pdf ; https://amazonwatch.org/news/2022/0622-the-business-case-for-indigenous-rights

Subrogation as Strategy to Reduce Climate-Related Risk

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