Insurance Australia Group (IAG) – which backs NRMA Insurance (NRMA) CGU, AMI, State, and NZI – has joined the Net-Zero Insurance Alliance (NZIA), a team of 28 major insurance companies committed to transitioning their insurance and reinsurance underwriting portfolios to net-zero greenhouse gases (GHGs) by 2050.
Joining the NZIA is in line with IAG's Driving to Zero focus area outlined in its Climate and Disaster Resilience Action Plan, which includes delivering on its commitment to leveraging its underwriting and investment approach to drive net-zero emissions.
IAG managing director and CEO Nick Hawkins stated that weather and climate are IAG's core business. For nearly two decades, the insurance giant has educated itself about climate change and its business impacts and has sought to reduce climate risk for customers and communities.
However, IAG noted the lack of methodology to measure and disclose net-zero Scope 3 emissions related to customers' insured assets. Therefore, it will work with the world's leading insurers to develop industry-appropriate methodologies and strategies to help insurers transition to net-zero.
“As a business, we are committed to reaching net zero by 2050. We are excited to join the Net-Zero Insurance Alliance and be involved in developing the methodologies and strategies to achieve this through our underwriting portfolio and work towards a net-zero future,” Hawkins said.
The NZIA was founded by Allianz, Aviva, AXA, Generali, Munich Re, SCOR, Swiss Re, and Zurich Insurance Group (Zurich) in July 2021. In October 2021, Lloyd's confirmed that it will join the alliance, vowing to transition its operational and attributable GHGs to net-zero by 2050 at the latest and set, publish, and report against interim targets every five years.