Insurance/Reinsurance and Climate Change

Global warming and the growing incidence of extreme weather events pose enormous challenges to the insurance industry. Chadbourne's insurance and reinsurance group provides an interdisciplinary team able to address virtually any legal issue affecting the worldwide insurance and reinsurance industries, including those caused by climate change. For example, Chadbourne's insurance and reinsurance group can:

  1. advise clients on coverage issues related to climate change in order to help mitigate risks;
  2. assist in contract evaluation and the crafting of contract wording to address climate change exposure (e.g., pollution exclusions and shareholder claim carve outs); and
  3. counsel clients in the development of underwriting strategy and appropriate underwriting disclosure requirements and guidelines.

While climate change poses potential threats, it also creates vast new business opportunities for insurers and reinsurers. Areas of opportunities for new product development include Alternative Risk Transfer (ART) and renewable energy-related insurance products. Chadbourne has experience in representing clients in ART transactions and can assist clients in using alternative risk solutions, including catastrophe bonds, insurance linked securities, index futures, industry loss warranties, and sidecars, to mitigate and effectively spread climate disaster risk.

The regulatory landscape and public company disclosure requirements associated with climate risk are evolving. Companies can expect to face increased scrutiny from regulators and shareholders of their environmental disclosures for adequacy and completeness and can anticipate significant pressure with respect to their disclosure. The result is an environment ripe for regulatory enforcement actions and shareholder litigation, which will ultimately leave the insurance and reinsurance industries facing general liability, environmental, and D&O claims. Chadbourne’s insurance and reinsurance team has significant experience in assisting companies in developing contract wording and risk management plans to meet the demands of these emerging risks.

As leaders in insurance and reinsurance dispute resolution, Chadbourne's lawyers stand ready to handle the challenging issues that accompany disputes arising in the ART arena and the complications that come with coordinating responses to mega-catastrophes such as Hurricane Katrina.

Representative Experience

Reinsurance Sidecar Transaction
Cyrus Reinsurance Holdings
Formation, private-placement capitalization, and reinsurance agreement negotiation for a reinsurance "sidecar" transaction.
Reinsurance Contract Review
Major Reinsurer
Review, analysis and advice to a major reinsurance company of the reinsurance contract language used by the company.
Reinsurance Representation
Major Ceding Company
Representation of a major ceding company with respect to asbestos, environmental losses, the attack on the World Trade Center, and Hurricane Katrina.
[ more representative experience ]


Related Practice Areas

Insurance and Reinsurance
Alternative Dispute Resolution (ADR)
Litigation

Related Regions

North America
United States
 

Worldwide Contact

Joy L. Langford
Washington, DC
+1 (202) 974-5647

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