Law360, New York (August 12, 2010, 11:38 AM EDT) -- Most first-party insurers have not anticipated the impact of cap and trade on their business lines either in the U.S. or abroad. First-party risks involved in cap-and-trade systems face unique underwriting and claims issues. How are emission credits treated during a covered loss? Are insurers exposed to volatile cap-and-trade markets when insured green technology fails? How can first-party underwriting provide clarity in this emerging area?
What is Cap and Trade?
“Cap and trade” is a market-based policy tool that controls large amounts of (greenhouse gas) emissions...
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