17th September 2023
Chubb has announced the launch of a new Lloyd's consortium it will lead that is designed to provide insurance coverage for risks associated with the transit and storage of lithium batteries.
The consortium was created to address a lack of capacity in the marine cargo market for providing lithium battery transit and stock insurance. It provides a one-stop solution with limits up to $50m for risk types associated with lithium batteries including transit, stock throughput, standalone stock and warehouse legal liability, and will include excess stock and part orders. It is led by Chubb Global Markets(CGM), the company's London Market wholesale and specialty business including its Lloyd's platform, and supported by 11 other Lloyd's syndicates. CGM will also draw on the capabilities of Chubb Climate+, the company's global climate business unit launched early in 2023.
Rob Wilson, cuo for Chubb Global Markets, said: "We're delighted to lead the creation of this battery consortium with the support of the Lloyd's market, utilising our in-house risk management capabilities to ensure its viability. The work involved in managing lithium battery risks is extensive and brokers can now use this facility to gain access to capacity in this new risk area. The consortium provides brokers and insureds with a single port of call to bind these risks, helping to shore up the lithium battery supply chain as demand continues to grow."
Matt Hardy, leader of Chubb Climate+ for Chubb Overseas General, said: "The lithium battery industry is growing at a rapid rate and many businesses involved in moving and storing these batteries are increasingly in need of an experienced and reliable insurance partner and solution to support the ramp-up in production. The creation of a consortium dedicated to underwriting these risks aligns firmly with our commitment to harnessing our underwriting and risk engineering capabilities to support the transition to a low-carbon economy."
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