After the exit of four big names from the United Nations-convened Net-Zero Insurance Alliance (NZIA), Lloyd’s chief executive John Neal is sharing what he thinks the NZIA should be doing to avoid further departures.
The CEO told Reuters: “There are five objectives, and you have 12 months to meet one of them and 36 months to meet three of them. NZIA needs to have another look at what its objectives are, or the alliance will fall apart.”
As for Lloyd’s, according to Neal, the insurance marketplace is staying put. He also indicated that Lloyd’s has no issues with compliance in terms of its NZIA membership.
Swiss Re, the latest reinsurance giant to cut its ties with the NZIA, did not elaborate as to why it wanted to cease being connected. It’s been reported, however, that the exodus – which already saw Munich Re, Zurich Insurance Group, and Hannover Re out the door – has something to do with political pressure coming from the US.
In a statement this week, the United Nations Environment Programme (UNEP) said: “In light of the recent discussions within the United States, members of the United Nations-convened Net-Zero Insurance Alliance, particularly those with significant US business and exposure, have made the individual and unilateral decision to either remain or withdraw from the NZIA.
“As a voluntary initiative convened by the United Nations Environment Programme, every company has the freedom to join or withdraw from the NZIA at any point in time and for any reason.”
The statement comes less than two weeks after several attorneys general – from Utah, Louisiana, Alabama, Alaska, Arkansas, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Mississippi, Missouri, Montana, New Hampshire, Ohio, Oklahoma, South Carolina, South Dakota, Texas, Virginia, West Virginia, and Wyoming – wrote an eight-page letter to NZIA members.
Part of the letter reads: “We, the undersigned attorneys general, are concerned with the legality of your commitments to collaborate with other insurers and asset owners in order to advance an activist climate agenda. These actions have led to serious detrimental effects on the residents of our states.
“The push to force insurance companies and their clients to rapidly reduce their emissions has led not only to increased insurance costs, but also to high gas prices and higher costs for products and services across the board, resulting in record-breaking inflation and financial hardships for the residents of our states. These financial effects are well-known and important. This letter, however, will focus on our legal concerns related to your actions.”
The UNEP, meanwhile, reaffirmed its conviction that there is a fundamental and urgent need for collaboration in order to successfully tackle the climate emergency.
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