Chubb Ltd: Disclose Strategy to Reduce Climate-Related Risk

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WHEREAS:  The United States is facing a homeowners insurance crisis. In 2023, national insurance underwriting losses reached a 10-year high of $38 billion due to more frequent and intense weather-related disasters, inflation costs associated with rebuilding, and reinsurance price increases.[1] 2024 followed as the second-costliest year for catastrophe losses since 2005.[2]

The insurance industry has responded with aggressive rate increases and policy non-renewals. Between 2017 and 2023, homeowners' premiums increased nationwide by 34% and another 10.4% in 2024.[3] Approximately 1.9 million insurance contracts have not been renewed since 2018.[4] 

While price hikes and non-renewals preserve short-term insurance company profitability, they threaten the sustainability of the homeowners insurance customer base. They also create risk for financial markets. Homeowners insurance enables access to mortgage loans necessary for home purchases; home sales support a range of other businesses while generating property tax revenue for local and state governments. When insurance becomes unaffordable or unavailable, home sales slow, property values decline, and cascading shocks ripple across the housing market and the broader economy.

One important means by which insurance companies can stem this crisis is to offset their catastrophe losses through subrogation, an industry practice where insurers pursue contributions for claim payments made from responsible third parties. Seeking contributions from responsible parties not only helps reduce costs borne by insurance companies but maintains affordable premiums and ensures that responsible parties are held accountable for the damage they cause.

Chubb experienced $2.4 billion in pre-tax catastrophe losses in 2024 compared with $1.8 billion in 2023.[5] Seeking compensation from parties responsible for causing climate change will allow Chubb to successfully maintain its homeowner business line and serve its customers responsibly.

Attribution science has developed sufficiently to assign responsibility for climate change to responsible parties.[6] It can also assess the frequency and intensity of certain types of extreme weather attributable to climate change.[7] Accordingly, recent legislative proposals in California[8] and Hawaii[9] have encouraged insurers to pursue subrogation claims against high-emitting companies for climate-related damages.

Chubb has not disclosed whether it is exploring opportunities to recover climate-related damages from responsible parties, even though such actions could reduce claim-related losses, preserve shareholder value, and improve insurance affordability and availability.

Shareholders would benefit from understanding whether management is considering this cost-recovery opportunity, the rationale for its approach, and how such strategies could affect the Company’s financial performance under various climate scenarios.

BE IT RESOLVED:  Shareholders request that Chubb issue a third-party report assessing if and how pursuing subrogation claims for climate-related losses would benefit the Company and its insureds, omitting proprietary information, and at reasonable expense.

Resolution Details

Company: Chubb Ltd

Lead Filers: As You Sow

Year: 2026

Filing Date: November 2025

Initiative(s): Climate Change

Status: Filed

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Climate and EnergyAs You Sowrisk management, risk, disclosure, climate, pricing, coverage, insurance, Chubb, Chubb Ltd