Proactive Investors - Lloyd's of London has become the latest insurer to quit the United Nation’s Net Zero Insurance Alliance (NZIA), as US political pressure and fears of antitrust lawsuits grow.
“Lloyd’s has decided to withdraw from the NZIA with immediate effect,” the company said on Friday.
“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.”
Lloyd’s has joined the likes of AXA SA (LON:0HAR), Allianz (ETR:ALVG) and QBE (ASX:QBE) in fleeing from the alliance in recent weeks, as membership of the group fell to just 17 firms as of Tuesday, from 30 in March.
Members of the NZIA, which was set up under GFANZ in 2021 by ex-Bank of England governor Mark Carney, have faced scrutiny from US Republican politicians over climate commitments, alongside fears of competition lawsuits such as collusion.
“As the Net-Zero Insurance Alliance disintegrates before our eyes, we must ask why these huge companies with their hordes of lawyers did not see antitrust issues [before],” Reclaim Finance analyst Patrick McCully commented on the departures last week.
“We must wonder whether their ditching of the alliance has more to do with fears of losing business in the US than real legal jeopardy.”
The United Nations had stressed the need for collaboration in cutting emissions, though the calls were not enough to prevent the wave of exiting firms from growing.
Aviva PLC (LON:AV.) and Beazley PLC (LON:BEZG) were among the alliance’s remaining members on Monday afternoon.