Chubb

The provision of both commercial and personal insurance meets an important societal need, as does the underwriting of risk, including weather-related risk. A disciplined approach to underwriting has been central to Chubb’s success over the last two decades.

The company has increased its dividend every year since it floated in 1994, qualifying it as a Dividend Aristocrat. Chubb offers significant diversification by business and geographical area and has a solid record of creating shareholder value, something we expect will continue.

As an insurer, Chubb is directly incentivised to minimise losses through climate related events. Climate change however remains a material risk for Chubb, as more frequent and severe global weather events (e.g., floods and wildfires) drive higher insurance claims. 

Newer risk-areas for the insurance industry include Cybersecurity.  Potential risks for the insurance sector uniquely relate to an insurers own systems or customer data and additionally, losses stemming from insured risks.

Cyber-risks can deliver substantial disruption and losses on a global basis from a very localised incident. Such amplification of risk from a single event is new to the insurance industry.