Lloyd's, QBE latest to drop out of NZIA

Lloyd’s, QBE latest to drop out of NZIA | Insurance Business New Zealand

Insurance News

Lloyd’s, QBE latest to drop out of NZIA

Departures follow series of insurer exits

Insurance News

By
Jen Frost

Lloyd’s and QBE have become the latest participants to withdraw from the Net Zero Insurance Alliance (NZIA), according to Friday updates.

“Lloyd’s has decided to withdraw from the NZIA with immediate effect,” Lloyd’s said in an update shared on its website. “We continue to support the UN’s Principles for Sustainable Insurance and Sustainable Development Goals, and remain committed to delivering our sustainability strategy including supporting the global economy’s transition.”

QBE also announced its “resignation as a member organisation” on May 26.

“We will continue to work with our stakeholders to deliver on our broader sustainability strategy,” QBE said in a Friday press release.

A flurry of insurers and reinsurers have exited the United Nations Environment Programme (UNEP) convened voluntary alliance in the past month, some citing anti trust concerns. AXA, Scor, and Allianz all left the group last Thursday, following departures from big names including Zurich, Swiss Re, Hannover Re, and Munich Re.

“Regardless of the situation, UNEP reaffirms its conviction ever since it initiated, convened, and launched the NZIA—that in order to successfully tackle the climate emergency, there is a fundamental and urgent need for collaboration, not just individual action,” UNEP said in a May 24 update.

Last week, prior to confirmation the insurance marketplace would pull out of the alliance, Lloyd’s CEO John Neal 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.”

While big names, including NZIA founding members, have headed for the exit, the alliance has seen one recent addition. In April, Beneva bucked the trend by joining the NZIA, becoming the first Canadian insurer member.