Zurich Insurance Group follows Munich Re in net-zero alliance exit

Global multi-line insurance carrier  Zurich Insurance Group will join global reinsurer Munich Re in withdrawing from the Net-Zero Insurance Alliance (NZIA), citing hopes to focus more on helping clients towards energy transition.

“Zurich has decided to withdraw from the Net-Zero Insurance Alliance,” the group has acknowledged.

“After establishing a standardized methodology for measuring and disclosing greenhouse gas (GHG) emissions associated to insurance and reinsurance underwriting portfolios, we want to focus our resources to support our customers with their transition.”

The UN-convened Net-Zero Insurance Alliance (NZIA) is a group of leading insurers and reinsurers pledge to a set of commitments aligned with the UN's Race to Zero. Members commit to transition their insurance and reinsurance underwriting portfolios to net-zero greenhouse gas (GHG) emissions by 2050, consistent with targets set in the COP-21 Paris Agreement on Climate Change.

“We continue to remain fully committed to our sustainability ambitions and to supporting the net-zero transition,” Zurich claimed in its statement.

The announcement comes within a week of a similar declaration from the world’s largest global reinsurer, Munich Re.

Munich Re cited “material antitrust risks” to NZIA membership and said it sees greater value in pursuing its climate strategy individually.

The right independent recipe might even enable a faster march to net zero than via membership, Munich Re had hinted.

Three of the global big four reinsurers remain in the pact after the resignation by Munich Re.

Anti-trust risks flagged by Munich have dogged the climate pact.

“Competition authorities in the EU and UK should have clarified their antitrust laws,” an analyst for lobby group Reclaim Finance, Ariel Le Bourdonnec, said of developments.

“These laws, initially meant to prevent business abuses, must not prohibit collective efforts to combat the climate emergency. Collective climate action from insurers and reinsurers is welcome,” he added.

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