In the aftermath of a series of departures last year, the remaining members of the Net-Zero Insurance Alliance (NZIA) are reportedly contemplating the reconstruction of the group, with discussions suggesting the inclusion of brokers and regulators in a potential new iteration.
Over a two week period in June 2023, ten major insurance and reinsurance companies left NZIA, including AXA, Allianz, SCOR and Swiss Re, Lloyd’s and QBE. The alliance faced the significant exodus in 2023 amid pressures from US Republicans and allegations of antitrust breaches. It had previously boasted around 30 members. Presently, only 11 members are listed on the NZIA website.
As outlined in a report by the Financial Times, the United Nations-convened NZIA is now exploring avenues to broaden its membership base beyond (re)insurers, with considerations to involve brokers and regulatory bodies.
Current members include UK’s Aviva and Italy’s Generali, and are said to be were “fully committed to the net zero transition and are engaging with a broader community of stakeholders on the evolution of the NZIA.”
The FT report quoted Lindsay Keenan, a senior strategist at climate advocacy organisation The Sunrise Project, saying that she expressed approval for the inclusion of regulators, brokers, and other stakeholders in the conversation, the speaker simultaneously encouraged insurers to fulfill their net zero commitments by incorporating fossil fuel exclusions.
The current roster includes Achmea, American Steamship Owners Marine Insurance Company (Europe) Ltd (formerly known as Hellenic Hull Management), ASR Nederland N.V., Aviva Plc, Crédit Agricole Assurances, Fidelis MGU, Generali Group, ICEA LION Life Assurance Company, Intesa Sanpaolo Vita, KB Insurance, and NN Group N.V. These companies are reportedly engaging with a wider community of stakeholders in an effort to pave the way for a revitalized NZIA.
Sources suggest that the potential involvement of regulators in the reconstituted alliance could serve as a transparency measure, signalling the consortium’s commitment to openness and accountability. The NZIA’s journey towards renewal and expansion remains a key development in the evolving landscape of sustainability-focused insurance initiatives.
