Insurance sector faces ‘tremendous volatility’ amid climate crisis, says Chubb CEO
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On Thursday, CEO Evan Greenberg told CNBC’s Jim Cramer that climate change is a significant contributing factor influencing insurance prices.
“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.”
Greenberg pointed out that insurance prices are also rising due to general inflation and increasing litigation expenses. He highlighted how litigation has become a profitable industry, continuously evolving new liability theories.
Greenberg emphasized that these costs are ultimately borne by corporate America and consumers.
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“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,” Greenberg emphasized.
Greenberg stated that Chubb, renowned for insuring businesses and affluent individuals, is also a significant player in agricultural insurance. He mentioned that 60% of Chubb’s operations are within the US, with the remaining 40% spread internationally.
Greenberg highlighted North America and Asia as Chubb’s primary regions, expressing optimism about their substantial economic growth potential.
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