22 January 2024

FT: Insurers in talks to overhaul net-zero group after member exodus

Big insurers are in discussions about overhauling a climate-related alliance that was deserted by key members after a US political backlash last year, recasting it as a broader forum to address negative perceptions. The Net-Zero Insurance Alliance is a UN-convened body that commits insurers and reinsurers to reducing greenhouse gas emissions tied to their underwriting, as part of a finance sector initiative led by former Bank of England governor Mark Carney.

It suffered an exodus after threats from right-wing politicians in the US and anti-ESG activists that the insurers could be in breach of antitrust laws. The alliance’s remaining members have since held talks on whether the group could be reconstituted and widened to include regulators and brokers to establish best practice on how to calculate and reduce the sector’s carbon impact, according to people familiar with the matter.

Existing members, which include UK’s Aviva and Italy’s Generali, were “fully committed to the net zero transition and are engaging with a broader community of stakeholders on the evolution of the NZIA”, a spokesperson said. The alliance’s commitments are non-binding, however. “The forum will be able to explore decarbonisation approaches by involving key sectoral players such as insurers, reinsurers, brokers, regulators and campaign groups,” said one person at an alliance member. Another member said this would allow it to show it had “nothing to hide, having the regulators involved”...

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