Allianz, AXA, QBE, Sompo resign: industry net zero initiative on brink of collapse
Six of the eight founding members have now withdrawn from the industry net zero initiative NZIA, with Allianz, AXA, QBE and Sompo latest to call it quits, joining European heavyweights SCOR, Swiss Re, Munich Re, Hannover Re and Zurich Insurance Group.
QBE announced its resignation Friday morning (May 26) stating that it “will continue to work with our stakeholders to deliver on our broader sustainability strategy.”
Sompo said while it had decided to withdraw, its commitment to net zero “remains solid and unchanged.”
On Thursday, both AXA and Allianz pulled out from the Net Zero Insurance Alliance, with the French insurer leaving to “continue its individual sustainability journey, as an insurer, an investor and a responsible company”, and Allianz reaffirming its full commitment to its own climate goals.
French reinsurer SCOR also ended its membership in the industry body yesterday, with its new CEO Thierry Léger announcing the move at its annual general shareholder meeting without giving a specific reason for the move.
SCOR’s exit came shortly after Swiss Re declared its decision to withdraw from the alliance earlier this week. Munich Re ended its membership in the alliance in March, citing “material antitrust risks”, with Zurich and Hannover Re subsequently following suit.
The rapid exit of key industry players delivers a significant blow to the UN-convened global climate alliance focused on reducing emissions. It underscores the challenges insurers face in aligning their response to decarbonisation, including legal and competitive barriers. Furthermore, it may hinder insurers’ capacity to effectively mitigate risks associated with carbon-intensive underwriting portfolios.
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