German reinsurance giant Hannover Re has, after careful consideration, opted to leave the Net-Zero Insurance Alliance (NZIA), making it the third high profile re/insurer to leave the UN-convened alliance in less than a month.
Hannover Re joins NZIA founders Munich Re and Zurich in leaving the association, which was launched at the G20 Climate Summit in Venice in 2021.
Under the NZIA, which was convened by UNEP Finance Initiative’s Principles for Sustainable Insurance (PSI), members were committed to transition their underwriting portfolios to net-zero greenhouse gas (GHG) emissions by 2050.
In a statement released today, Hannover Re said that it has decided to leave the NZIA after careful consideration.
“Regardless of this, Hannover Re remains committed to its sustainability strategy, the associated goals and its support for the Paris Agreement, and aims to achieve full climate neutrality by 2050 at the latest,” added the reinsurer.
These commitments were announced by the carrier in October 2021, and includes a commitment to achieve net zero emissions in business operations by 2030 and in its reinsurance portfolio and investments by 2050.
While Hannover Re hasn’t provided a detailed reason for leaving the NZIA, Munich Re highlighted antitrust risks as limiting the scope of its decarbonisation goals, while Zurich noted a desire to focus its resources to support its customers with their transition.
Regardless of the reason for quitting the NZIA, the withdrawal of Munich Re, Zurich, and now Hannover Re, three truly large global re/insurers, is notable, and suggests that other members might follow suit in the coming days and weeks ahead.
