Chubb has announced the launch of a new Lloyd’s consortium aimed at addressing the risks associated with the transit and storage of lithium batteries.
The consortium was conceived in response to the growing demand for insurance solutions tailored to the lithium battery supply chain. It offers coverage limits of up to $50 million, encompassing risk types such as transit, stock throughput, standalone stock and warehouse legal liability, excess stock, and part orders.
Led by Chubb Global Markets with support from 11 other Lloyd’s syndicates, the consortium will also leverage the capabilities of Chubb Climate+, the company’s global climate business unit that launched earlier this year.
“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,” said Rob Wilson, chief underwriting officer for Chubb Global Markets.
Wilson pointed to the extensive work that goes into managing the risks associated with lithium batteries, which power a wide range of devices and technologies, including electric vehicles and renewable energy systems.
“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,” he added.
Matt Hardy (pictured), leader of Chubb Climate+ for Chubb Overseas General, highlighted the rapid growth that the lithium battery industry has seen in recent years and how this has been accelerated further by the global transition towards a low-carbon economy.
“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,” said Hardy.
“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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