NZIA: Urgent need for collaboration to tackle climate

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The Net-Zero Insurance Alliance has called for re/insurers to take steps to tackle climate change in collaboration, not just individually, after nearly half of its original co-founders left the alliance in the past two months. 

Swiss Re and Hannover Re recently quit NZIA without providing a reason. Zurich said it wanted to focus on resources to help customers transition to net zero, while Munich Re withdrew from the alliance citing antitrust risks. 

Those with significant exposure to the US have made such decision, the alliance noted. 

The NZIA said as a voluntary initiative convened by the United Nations Environment Programme, every company has the freedom to join or withdraw at any point in time and for any reason.

It added: “Regardless of the situation, UNEP reaffirms its conviction ever since it initiated, convened, and launched the NZIA that in order to successfully tackle the climate emergency, there is a fundamental and urgent need for collaboration, not just individual action.”

The NZIA has provided a framework that enables re/insurers around the world to drive forward their journeys to a net zero economy, it said. 

“This is why UNEP will continue to strengthen and deepen its collaborative work with the insurance industry and key stakeholders to advance net zero insurance thinking and practices globally.”

Founded in July 2021, NZIA is a group of re/insurers committed to transitioning their respective underwriting portfolios to net zero greenhouse gas emissions by 2050.

The original founders of the NZIA were: AXA, Allianz, Aviva, Generali, Munich Re, SCOR and Zurich. Despite losing almost half of its co-founders, the alliance has grown since its launch and currently has 27 members, with the latest addition being Canada’s Beneva.

What does the future hold for NZIA?

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