Evan Greenberg, CEO of Chubb, highlighted the significant impact of climate change on insurance pricing during an interview with CNBC’s Jim Cramer on Thursday. Greenberg pointed to the increased volatility driven by climate change, which he noted is continually evolving.
“Climate change has created tremendous volatility, and it continues to evolve,” Greenberg said. “The concentrations of values in areas where the impact of the climate is greatest continue to increase.”
Chubb, renowned for insuring businesses and affluent individuals, also plays a significant role in agricultural insurance. Greenberg stated that 60% of Chubb’s operations are based in the U.S., with the remaining 40% spread internationally. He identified North America and Asia as Chubb’s “two biggest regions,” citing their substantial potential for broad economic growth.
Additionally, Greenberg pointed to general inflation and rising litigation costs as key factors driving up insurance prices. He described litigation as a “money-making industry” that continually develops new theories of liability, ultimately burdening corporate America and consumers with increased costs.
“We intermediate money; we don’t produce money,” he explained. “Reflecting loss cost—when you think general inflation, climate change, litigation—that is driving the pricing of insurance.”
Chubb’s stock saw a significant boost in mid-May after Warren Buffett revealed that the company was Berkshire Hathaway’s secret stock pick. As of Wednesday’s close, Chubb shares had risen 16.7% year-to-date.
In March, Chubb provided former President Donald Trump with a $91.6 million appeal bond after he was found liable for defaming writer E. Jean Carroll, who accused him of rape. However, shortly after, Chubb withdrew from discussions to provide Trump with a $464 million appeal bond in his civil fraud case.
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