In a major shift for the US, the insurance company Chubb will cease providing coverage to coal-fired power plants or to companies earning over 30% of their revenue from thermal coal mining. The change comes amid rising costs of climate-change related claims, such as hurricanes, floods, and wildfires, which have proved costly for the insurance industry as a whole. 2018 witnessed the fourth-highest recorded climate-related losses. While the trend towards denying coverage fossil-fuel based businesses has become relatively common in the European market, this is the first major instance of a US provider making this choice. If other providers in the US insurance industry follow suit, this may increase costs dramatically for many US-based companies that derive revenue from coal or other types of fossil fuels.
