Climate group says Australian insurers lag behind overseas companies in not divesting from fossil fuels

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Chubb Broadens Availability of Its Environmental Insurance Products and Services

PHILADELPHIA – Chubb has broadened the availability of its premises pollution liability and other environmental insurance coverages and risk management solutions through its newly expanded distribution network.

“As other insurers exit core lines of pollution liability coverage, Chubb remains committed to being a full service provider of environmental insurance for businesses of all sizes,” said Craig Richardson, Executive Vice President, Chubb Environmental. “Market conditions, specific industry risks, and changing Environmental Protection Agency and state regulations have created a wide range of environmental exposures for businesses. Chubb works with companies to create environmental risk management strategies as well as provide a broad range of global environmental coverages, from traditional policies for simple operational exposures to custom programs designed specifically for complex liability relief or M&A transactions.”

Chubb’s Environmental products distribution network has grown from nine to 48 branch offices. A broadened array of products and capabilities are now available for small, mid-sized, and large domestic and multinational companies, including:

  • Premises Pollution Liability Products – Protection for a variety of residential, commercial, retail, and industrial environmental risks. Industry-specific coverages for Real Estate, Healthcare, Public and Educational Entities, and Agriculture are available.
  • Contractors Pollution Liability Products – Stand-alone pollution or packaged pollution policies for practice or project-specific (i.e., Owner Controlled Insurance Program, Contractor Controlled Insurance Program, and Healthcare) environmental liabilities associated with day-to-day construction, remediation and/or consulting services. Packaged pollution includes errors and omissions liability protection.
  • Underground and Aboveground Tank Coverage – TankSafe®, Chubb’s fully-automated Internet-based system, provides commercial underground and aboveground storage tank insurance.
  • Environmental Incident ALERTSM – All new Chubb environmental policies receive access to this complimentary logistical environmental response program that offers 24/7 immediate support for environmental releases of hazardous materials and other regulated substances.

Environmental policy customers also will have access to a global network of best-in-class engineering consultants, including environmental risk control experts from ESIS, Inc. ®

All products may not be available in all states. Surplus lines products are available only through licensed surplus lines producers. Coverage is subject to the language of the policies as issued.

About Chubb

Chubb is the world’s largest publicly traded property and casualty insurance company. With operations in 54 countries, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. The company is distinguished by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength, underwriting excellence, superior claims handling expertise and local operations globally.  Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index.  Chubb maintains executive offices in Zurich, New York, London and other locations, and employs approximately 31,000 people worldwide. Additional information can be found at: new.chubb.com.

G-7, World Bank to insure poor nations against disease outbreaks

RYO NAKAMURA, Nikkei staff writer

WASHINGTON — The Group of Seven and the World Bank plan to create an insurance system to help poor countries cope with infectious diseases.

The plan calls for setting up a fund to pay insurance premiums, enabling beneficiary countries to receive up to $500 million for countermeasures over three years. The system is to be established in cooperation with the private sector.

The initiative emerged in the wake of the 2014 Ebola outbreak in West Africa, which killed more than 10,000 people. Funding delays have been blamed, in part, for the high death toll.

The recent outbreak of Zika virus, which started in South America, is adding to global concern about contagions.

Japan, as the current chair of the G-7, will step up efforts to coordinate an agreement on the insurance program. The U.S., U.K., Germany, France, Italy and Canada round out the group of major industrial nations.

Measures to fight diseases in destitute and other countries are on the agenda for a World Bank and International Monetary Fund development meeting in Washington on Saturday.

In May, G-7 finance ministers and central bankers will hammer out the details of the plan when they gather in the northeastern Japanese city of Sendai, Miyagi Prefecture. That should pave the way for an agreement at the G-7 summit in Ise-Shima, Mie Prefecture, later in the month.

The Japanese government wants to include the accord in the joint statement adopted at the summit.

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Ban urges insurance industry to take leadership in climate change response

UN News Centre

13 April 2016 – The insurance industry is a key actor in forging new instruments to anticipate and manage climate risks, Secretary-General Ban Ki-moon said today, urging the industry to continue to work with the United Nations to manage and reduce such risks and ultimately ensure a more sustainable world for all.

“The world needs your leadership to meet the climate challenge,” Mr. Ban said in remarks at a high-level meeting on resilience with insurance industry leaders and other stakeholders at UN Headquarters in New York this morning.

Emphasizing that the “impacts of climate change will affect every aspect of our lives,” the Secretary-General noted that the insurance industry played a key role at the Climate Summit he hosted in 2014 and was instrumental in mobilizing momentum for the Paris Agreement in December 2015.

Climate change “profoundly affects” the core business of the insurance industry because the industry will be faced with “mounting claims of a magnitude not yet seen” and also because the industry’s investment decisions can give rise to unexpected risks.

“Conversely, if you invest wisely, you could reap new rewards – for both your own businesses and society at large,” the UN chief said.

Recalling the ‘Anticipate, Absorb, and Reshape’ multi-stakeholder global initiative that he launched this past year to increase climate resilience, Mr. Ban stressed the importance of better anticipating and acting on climate hazards through early earning and early action, as well as reshaping development to reduce risks at both national and international levels.

The initiative – referred to as ‘A2R’ – was launched this past November by Mr. Ban and 13 agencies of the UN system, and aims to strengthen the ability of countries to anticipate hazards, absorb shocks, and reshape development to reduce climate risks.

Among the actions that the insurance industry should take include greening its investment portfolios and, by 2020, to measuring its carbon footprint. In addition, the industry should also ‘decarbonize’ its investments so as not to contribute to rising greenhouse emissions, the Secretary-General said.

“It is not enough to simply create new products to respond to climate catastrophes,” he stressed. “At some $25 trillion dollars, you own some of the world’s largest investment portfolios. Your investment decisions are crucial for reducing the growth of carbon emissions and protecting again the financial disruption caused by stranded assets.”

Mr. Ban also challenged the industry to double investments in clean energy and work with the UN to ensure that early warning and early actions are made available to the most vulnerable countries by 2020, since more than one million people have already lost their lives to disasters in this century. In addition, he said that the world’s most vulnerable people should be provided with greater access to risk transfer mechanisms.

“The poorest and most vulnerable people – those who have done least to cause climate change – need support to reduce their exposure to climate impacts,” the UN chief said.

Lastly, Mr. Ban challenged the insurance industry to develop auditable standards in the industry that incorporate the Sustainable Development Goals.

“It is no longer sufficient to work on voluntary principles and guidelines that do not affect vital decisions,” he said. “It is no longer sufficient to think that human development is the responsibility of governments alone. We thought the same about climate change for years. We were wrong.”

JPMorgan profit falls 8 per cent, fails key regulatory test

By Ken Sweet

THE ASSOCIATED PRESS

JPMorgan Chase said Wednesday that its first-quarter profit fell more than 8 per cent from a year earlier and the bank tried to soothe investor concerns after it failed a key regulatory test designed to prevent another financial crisis.

First-quarter profit at JPMorgan, the nation’s largest bank by assets, was hurt by weak results at its investment-banking division and by loans to oil and gas companies that are now struggling to make payments because of low energy prices.

As JPMorgan was announcing its quarterly results Wednesday, the Federal Deposit Insurance Corporation and the Federal Reserve announced that it, as well as four other banks, failed to meet a regulatory requirement put in place after the financial crisis. They were required to come up with a plan, known as “living will,” to unwind their operations in the event of a bankruptcy or other upheaval in a way that would avoid triggering another broad financial meltdown.

Regulators called the banks’ plans “not credible” and gave them until Oct. 1 to come up with new plans or face more stringent requirements.

It was symbolic defeat for JPMorgan and its executives. JPMorgan was one of the few banks to weather the housing downturn and financial crisis and CEO Jamie Dimon has repeatedly touted the firm’s “fortress” balance sheet, which he says would protect it from any future crisis.

“We are going to do everything we can to fix this problem,” Dimon said in a conference call with reporters.

The regulators’ issues with JPMorgan appear to be tied more into the bank’s legal structure than its balance sheet. JPMorgan’s plan relies on moving money from foreign subsidiaries, which could be difficult in event of a global financial crisis.

JP Morgan Chief Financial Officer Marianne Lake told investors she did not expect that the bank’s results would be held back as it addresses regulators’ concerns. And investors did not seem to be concerned. Shares in New York-based JPMorgan & Co. rose $2.51, or 4.2 per cent, to close at $61.79 on Wednesday amid a broad rally in bank stocks.

Still, this latest regulatory issue comes at a difficult time for JPMorgan and other big banks. Profits and share prices have fallen in recent months because loans to energy companies have gone bad and the Fed signalled it will slow the pace of interest rate increases, which hurts bank profits. Despite Wednesday’s rally, the financial sector is the worst performing sector of the Standard & Poor’s 500 index this year.

JPMorgan said it earned $4.99 billion after payments to preferred shareholders in the first quarter. That compares to a profit of $5.45 billion a year earlier. On a per share basis, the bank earned $1.35, compared with $1.45 a year earlier.

The results beat analysts’ expectations of $1.26 per share, according to FactSet. That estimate typically excludes one-time items.

The bank had to set aside $719 million in the quarter to cover potential defaults of loans to oil and gas companies and materials and mining companies. JPMorgan, like most of its competition, made billions in loans to drilling companies when oil prices were near $100 a barrel. The price fell to a 12-year low to below $27 a barrel in the first quarter.

Net revenue at the bank totalled $23.24 billion, compared with $24.07 billion in the same period a year earlier.

The company said profit at its investment bank fell 22 per cent from the year before to $1.98 billion. Profit from its consumer bank rose 12 per cent to $2.49 billion.

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The types of insurance that any kind of business must have

Tucson, AZ (SBWIRE) Business Insurance signifies one kind of security to any business. In times of acts of God and unexpected circumstances, business insurance is a great help.

risk

Usually, the kinds of business insurance and the levels of coverage are determined by the type of business itself. However, it may also affect lenders who are responsible for holding portions of the business as security against loans.

Here are some of the types of insurance that any kind of business must have:

General Liability Insurance. This kind of insurance is indeed a must, whatever the business is, even home-based businesses. In any case of claims for compensation from people outside the business, this general liability insurance provides protection.

Property Insurance. Business owners should always consider business interruption concerns business personal property, which includes office equipment, computers, inventory, or tools. This would protect any business from undesirable instances such fire, vandalism, theft and smoke damage.

Business Owner’s Policy (BOP). A typical business should involve these insurance policies. It is a combination of protection from all major property and even liability put together in one package. For many business owners, BOP would save money because of the bundle of services at lesser cost.

Worker’s Compensation. At any time, injury may occur to employees in the course of employment.In business, worker’s compensation protects the company and the employees.

Commercial Auto Insurance. This insurance involves the vehicles that carry employees and the products and equipment of the company.

Professional Liability Insurance. Commonly known as Errors and Omissions Insurance, failure to perform on the part of the policyholder, lost finance and error in the service are all covered in this type of insurance.

Directors and Officers Insurance. Directors and Officers Insurance protects the directors and officers of a company. It covers the costs or damages lost of any officers in a legal situation. It can also cover the defense costs from any criminal and regulatory investigations and trials.

Homeowner’s Insurance. Homeowner’s insurance, focused to protect the home of an individual against house damages or possessions in the home, is one of the most important kinds of insurance. Additionally, this type of insurance provides liability coverage against accidents in the home and property, as well. Homeowners insurance in Tucson, Arizona, for instance, is one of the least expensive because Tucson is given a rating based on its proximity to fire protection.

Life insurance. If there is an insurance that protects any person from death, it is the life insurance. This would not put too much financial burden on the family of the insurance holder who died.

Insurance is a good decision taken by any business owner. Understanding the differences of a variety of insurance types and getting involved with those are quite better decisions from sudden and paralyzing damages in the near future.

To learn about insurance training for Canadian insurance agents, visit ILScorp.com

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