Chubb launches Lloyd's lithium battery consortium

The consortium is led by Chubb Global Markets (CGM), the company’s London Market wholesale and speciality business, and is supported by 11 other Lloyd’s syndicates.

The consortium was created to address a need for more capacity in the marine cargo market for providing lithium battery transit and stock insurance. Lithium batteries are increasingly used in various products, including electric vehicles, power tools, and medical devices. However, they can be dangerous if not handled properly, and there have been several high-profile fires and explosions involving lithium batteries in recent years.

The consortium provides a one-stop solution for insurance coverage for lithium battery risks, including transit, stock throughput, standalone stock, and warehouse legal liability. It also includes excess stock and part orders. The consortium offers limits up to $50m and will be underwritten by Chubb and the other participating syndicates.

Rob Wilson, chief underwriting officer for Chubb Global Markets, said: “We’re delighted to lead the creation of this battery consortium with the support of the Lloyd’s market. The work involved in managing lithium battery risks is extensive, and we believe this consortium will provide a much-needed solution for businesses involved in the lithium battery supply chain.”

Matt Hardy, leader of Chubb Climate+ for Chubb Overseas General, said: “The lithium battery industry is growing at a rapid rate, and we believe that this consortium will help to support the safe and sustainable growth of this industry. We are committed to harnessing our underwriting and risk engineering capabilities to support the transition to a low-carbon economy, and this consortium is a further example of our commitment to this goal.”

The consortium’s launch is a significant development in the insurance market for lithium battery risks. It provides businesses with a much-needed solution for managing these risks and will help shore up the lithium battery supply chain as demand for these batteries continues to grow.