Responsible underwriting
Chubb is an underwriting company and we strive to emphasize quality of underwriting rather than volume of business or market share. Our underwriting strategy is to manage risk by employing consistent, disciplined pricing and risk selection. This, coupled with writing a number of less cyclical product lines, has helped us develop the flexibility and stability of our business, and has allowed us to maintain a profitable book of business throughout market cycles. Underwriting discipline is at the heart of our operating philosophy.
Chubb uses internal and external data together with sophisticated analytical, catastrophe loss and risk modeling techniques to ensure an appropriate understanding of risk, including diversification and correlation effects, across different product lines and territories. We recognize that climate changes and weather patterns are integral to our underwriting process and we continually adjust our process to address these changes. This is intended to help to ensure that losses are contained within our risk tolerance and appetite for individual product lines, businesses and Chubb as a whole.
Chubb supports a global transition to a net zero economy by 2050. Chubb recognizes the existential threat of global warming and the necessity to move away from a reliance on the fossil fuel carbon emissions that contribute to it. Chubb further recognizes that the transition to a net zero economy must be orderly and minimize disruption to modern social and economic activity. As such, Chubb will seek to encourage the transition through its products and service offerings and through its decisions on specific underwriting and investment risks. We will continue to assess our coverage of carbon-intensive industries and their related strategies and plans for transitioning to a lower-carbon economy. In this way, we will ensure the company’s underwriting and investment positions evolve as practical alternatives become available. Declining to underwrite or invest in all fossil fuel–related activity on a categorical basis does not represent a reasonable path to a net zero economy. Chubb will continue to develop and offer new insurance solutions for low– and zero-emission technologies. As part of its underwriting process, Chubb regularly applies exclusions, which depend on the specific conditions and circumstances of the risk being evaluated. Those exclusions may reflect ESG-related considerations. For example, Chubb is among the world’s largest global underwriters of environmental liabilities and pollution risks. However, Chubb’s underwriting in this business restricts certain industries, including mining and reclamation operations, oil refining, pipeline and distribution operations and chemical manufacturing and distribution. For more information, visit Chubb’s Environmental Insurance and Services section.
Chubb is also a global leader in financial lines insurance, which includes coverages for directors and officers. Chubb’s risk selection, along with the pricing and terms and conditions provided to policyholders, often incorporates ESG-related considerations, such as an assessment of the culture of the company, its track record of regulatory and legal compliance, and the policies and procedures in place to manage potential risks.
In addition, Chubb offers specific coverages that address sensitive sectors in the company’s insurance underwriting business. Some of these are bespoke coverage, which we do not disclose publicly. Some are for sensitive sectors that we do disclose on the company’s website, such as underground storage tanks, which are environmentally sensitive due to the risk of leakage and ground water contamination. Chubb’s 2021 Climate-Related Financial Disclosure and Environmental Report provides an overview of the company’s environmental products and services.
Chubb also sees opportunity in providing innovative insurance products and risk engineering solutions that are ESG related. For example, Chubb’s Cleantech business provides bespoke insurance solutions to companies that are creating new technology and driving innovation. This global business has dedicated underwriters, risk engineers and claims examiners who specialize in serving clean technology companies. Examples of other industries with unique risk management needs addressed with innovative Chubb products include transportation, long term care facilities and premises pollution liabilities for agricultural businesses. In addition to its product offerings, the company provides a variety of tools, resources and programming to help agents and brokers succeed, including training on environmental risk engineering and loss control techniques.
Chubb is also distinguished by its industry-leading risk engineering services, which includes more than 400 risk engineers worldwide who help companies anticipate and minimize costly exposures, including those related to ESG. For example, risk engineers bring deep technical knowledge and talent to help companies reduce their exposure to extreme weather events, which are becoming more frequent and severe due to climate change, as well as actions that will reduce the risk of accidents and injuries at construction sites, in factories, etc.
ESG governance
Underlying our mission and commitment to corporate citizenship is a strong leadership and governance structure. At the Board of Directors level, Chubb’s Nominating and Governance Committee is responsible for overseeing environmental, social and governance (ESG) issues, and other Board committees monitor and review specific ESG-related matters in accordance with their charters. ESG also remains a full Board topic. Management provides regular updates on ESG issues to the Nominating & Governance Committee and the Board.
The company’s Executive Committee, comprised of the company’s most senior executive leaders including the Chairman and CEO, General Counsel, Chief Risk Officer and the Vice Chairman, Global Underwriting and Claims (who has responsibility for Chubb’s global environmental program and climate sustainability strategy), is responsible for ensuring that Chubb’s ESG and citizenship activities are consistent with the company’s culture, values, corporate mission and business objectives. Chubb’s General Counsel leads management oversight of the company’s ESG initiatives and provides global coordination, working closely with diversity, human resources, communications, environmental and other leaders.
All business units and subsidiaries share responsibility for the implementation of Chubb’s ESG and citizenship principles. Click here for information on our dedication to responsible citizenship, including a description of our philanthropic, environmental and social initiatives.
Chubb’s Climate-Related Financial Disclosure and Environmental Report has additional information on the company’s climate change governance at the Board and management levels, including management responsibility for climate change risk and opportunity. Learn more here.
Enterprise risk management
Chubb’s enterprise risk management (ERM) framework is forward thinking, integrally linked to our key business objectives and designed to ensure sufficient financial strength over the long term to pay policyholder claims while simultaneously building and sustaining shareholder value. ERM provides a cohesive approach to the identification, assessment, management and mitigation of risk, including such risk controls as policies, guidelines and authorities.
ERM objectives
Chubb’s global ERM framework is embraced by colleagues at all levels of the company, from the Chief Executive Officer (CEO) and Board of Directors, down to each business unit and function. It is broadly multi-disciplinary and its objectives include:
- External risks: Identify, analyze, quantify and mitigate significant external risks that could materially hamper the financial condition of Chubb and/or the achievement of corporate business objectives.
- Exposure accumulations: Identify and quantify the accumulation of exposure to individual accounts/counterparties, industry, country and/or products, particularly those that materially extend across or correlate between business units or divisions and/or the balance sheet.
- Risk modeling: Develop and use various data-sets, analytical tools, metrics and processes (including catastrophe models, economic capital models and advanced analytics) that help division and corporate leaders make informed underwriting, portfolio management and risk management decisions within a consistent risk/reward framework.
- Governance: Establish and coordinate risk guidelines that reflect the corporate appetite for risk, monitor exposure accumulations relative to established guidelines, and ensure effective internal risk management communication up to management and the Board, down to the various business units and legal entities, and across the firm.
- Disclosure: Develop protocols and processes for risk-related disclosure internally as well as externally to rating agencies, regulators, shareholders and analysts.
ERM practices
Effective risk governance requires close and dynamic collaboration as well as focus on communication flow and risk identification. One of the key mechanisms by which ERM is put into practice at Chubb is through the role of executive and senior staff on the various ERM-related Boards and Committees. The associated collaboration and communication by senior executives ensures transparency and consistency in the application of ERM across Chubb enterprise-wide.
Chubb manages risk on both sides of its balance sheet by maintaining underwriting discipline, managing exposure accumulations and investing assets conservatively. The company’s balance sheet is a competitive advantage in a business where our financial strength and security equate to our ability to meet the expectations of regulators and rating agencies, as well as our fiduciary obligations to our policyholders and shareholders. We’re proud of the fact that Chubb’s core operating insurance companies are rated “AA” for financial strength by Standard & Poor’s and “A++” by A.M. Best.
Guarding your privacy
Information security and privacy practices
Data security has always been a top priority for Chubb — and is now more important than ever. Chubb takes a multidisciplinary and multi-faceted approach to the protection of personal and corporate information. We use administrative (e.g., governance and policy), technical (e.g., security tools) and physical safeguards (e.g., locks and other physical security measures) designed to protect information in our care. And we employ data protection strategies that are designed to monitor security threats, as well as clear protocols to respond to them.
Technological tools
Chubb uses information security tools designed to protect information and systems (e.g., encryption, firewalls, intrusion detection and prevention systems, patch management and identity management systems). Our Information Security Team regularly monitors these tools to discover anomalous and suspicious patterns and is prepared to respond immediately. Chubb participates in information sharing networks (government and private) and deploys system updates and other technology as appropriate.
Employee training
Chubb provides all employees with data protection training, covering topics like password management, secure transmission, social engineering (e.g., schemes to trick people into breaking normal security procedures to perform certain actions or to divulge confidential information) and privacy compliance. Employees involved with information protection, privacy and other risk management specialties also engage in specialized role-based training. Chubb uses a variety of training methods, including computer-based training, role-based training, company intranet awareness campaigns and various simulation exercises.
Data protection culture
At Chubb we actively promote a data protection culture. We maintain policies and standards designed to protect personal and corporate information that have been developed by a multi-disciplinary team including representation from information security and IT compliance, privacy, IT legal, compliance and business representatives.
Risk assessments and audit
Chubb’s information security policies and protocols undergo regular assessments and audits. In addition, we benchmark our programs against key regulatory frameworks.
Social media guidelines
Users who access Chubb’s social media platforms — including, but not limited to, Twitter, Facebook, LinkedIn, Instagram and YouTube — are asked to be respectful, relevant and safe.
These guidelines apply to Chubb and Chubb subsidiaries’ social media-based websites, accounts and pages, including but not limited to Twitter, Facebook, LinkedIn, Instagram and YouTube (“social sites”). Chubb’s presence in online communities is intended to share information about Chubb’s industry insights, company news and initiatives, and our products and services in the spirit of education and awareness.
By accessing our social sites, you agree to abide by these guidelines in any and all posts, engagement or comments on Chubb-created content or Chubb social sites.
Be Respectful: Chubb’s social sites are intended to inform online communities about our industry insights, company news and initiatives, and our products and services. Please be respectful and avoid any use of offensive or inappropriate language or images.
Be Relevant: All comments should be aligned with the content and topic of Chubb posts and discussions.
Be Safe: Social sites are public forums. Do not reference or share any personal information, including claim or account numbers, e-mail addresses or phone numbers. For questions about an individual insurance matter, please contact your agent or broker.
Use Limitations:
Chubb reserves the right to block or delete any content or restrict any user, with or without notice, at any time and for any reason, for any content we deem to be disruptive, misleading, inappropriate, off topic, threatening, harmful, obscene or otherwise offensive or infringes on any intellectual property or any rights of others.
We reserve the right to modify or change these guidelines without notice.
reflect our current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that could cause actual results to differ materially from such statements. Please refer to Chubb Limited's filings with the Securities and Exchange Commission, including the most recent Forms 10-K and 10-Q, and any Forms 8-K since the most recent Form 10-K, for further information on such risks and uncertainties. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.