Chubb CEO says climate change has created ‘tremendous volatility’ for insurance companies

KEY POINTS
  • Chubb CEO Evan Greenberg told CNBC’s Jim Cramer that climate change is impacting insurance costs.
  • He also named general inflation and litigation as other factors driving insurance pricing.
  • Chubb shares jumped in mid-May when Warren Buffett announced the company was Berkshire Hathaway’s secret stock pick.

Chubb CEO Evan Greenberg told CNBC’s Jim Cramer on Thursday that climate change is one factor that’s driving the price of insurance.

“Climate change has created tremendous volatility, and it continues to evolve,” Greenberg said. “And the concentrations of values in areas where, where the climate – the impact of the climate – is greatest continues to increase.”

Known for insuring businesses and wealthy individuals, Chubb is also a major insurer of agriculture, Greenberg said. According to him, 60% of Chubb’s business is in the U.S. while 40% is outside the country. Geenberg added that Chubb’s “two biggest regions” are North America and Asia, which he said he thinks have the greatest potential for economic growth in a broad sense.

General inflation and litigation costs are also sending insurance prices up, Greenberg said. He claimed that litigation is a “money-making industry” which “constantly perfects new theories of liability.” Greenberg added that corporate America and, in turn, the consumer, shoulder the weight of these costs.

“We intermediate money, we don’t produce money,” he said. “And so, therefore, reflecting loss cost, when you think general inflation, when you think climate change, when you think litigation, that is driving the pricing of insurance.”

Chubb shares jumped in mid-May when Warren Buffett announced the company was Berkshire Hathaway’s secret stock pick. At Wednesday’s close, Chubb was up 16.7% year-to-date.

Chubb provided former President Donald Trump with a $91.6 million appeal bond in March after he was found liable for defaming writer E. Jean Carroll after she accused him of rape. Days later, the company backed out of talks to provide Trump’s $464 million appeal bond in his civil fraud case.

 

Shopping Cart

Media Kit

    Data Protection

    Personal Data (“Data”) submitted for Media Kit (“Media Kit”), and/or collected in the form of first name, last name, email address and other contact details may be used for the purposes of inviting you to future events and for reaching out to you with content which may be of interest to you. For these purposes, The Digital Banker will share the Data with our associate companies (including event and content sponsors) to promote their products and services. You will also be automatically subscribed as a user on www.thedigitalbanker.com. If you would like to opt-out, email us at [email protected].

    By clicking Submit, you acknowledge that you consent/ have sufficient informed consent to the collection, use and disclosure of Data as set out above.

    The Digital Banker Summit

    Moving on from FTX: is 2023 the year of CBDCs?

    Indonesia, Jakarta

    Thailand, Bangkok

    Philippines, Manila

    Contact Us

      Data Protection

      The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

      Request Nomination Pack

        Data Protection

        The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

        Registration Form

          Data Protection

          The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

          Registration Form

            Data Protection

            The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

            Registration Form

              Data Protection

              The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

              Registration Form

                Data Protection

                The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

                Registration Form

                  Data Protection

                  The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

                  The world’s preeminent Private Banks and Wealth Managers are demonstrating a committed drive in innovation, advisory, new products and services to meet the sophisticated needs of their clients.

                  COVID-19
                  Amid economic activity revival on the back of the Covid-19 vaccine program, organisations moving from business continuity plans to stable working environments, together with the slightest improvement in unemployment numbers, forced the world to adjust to new realities. Coming to terms with the “new normal”, global investors are now on the look-out for attractive and stable investment opportunities.

                  Needs of Private Wealth customers and families worldwide have drastically changed due to the pandemic and banks have had to accelerate efforts to deploy a multi-channel service strategy and safeguard clients’ businesses and wealth against negative impacts of economic uncertainly.

                  The Global Private Banking Innovation Awards will recognise the world’s best private banks, wealth managers and asset managers that are championing innovation across advisory, service, products, customer experience and more.

                  Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. 

                  Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

                  Request Nomination Pack

                  Error: Contact form not found.