Munich Re exits Net Zero Insurance Alliance over antitrust risks

Munich Re, one of the world’s largest reinsurance firms, has exited the Net Zero Insurance Alliance (NZIA), citing antitrust risk.

The comapny insisted that it would still keep to its climate targets of reducing carbon emissions in its investment portfolio by 29% by 2025, and net zero by 2050.

Explaining the decision to leave the NZIA, Joachim Wenning, chief executive of Munich Re, said: “In our view, the opportunities to pursue decarbonisation goals in a collective approach among insurers worldwide without exposing ourselves to material antitrust risks are so limited that it is more effective to pursue our climate ambition to reduce global warming individually.”

The NZIA is part of an alliance of bodies associated with The Glasgow Financial Alliance for Net Zero (GFANZ) a group that formed during the COP26 climate conference as a coalition of financial institutions committed to net zero.

Also associated with GFANZ is the Net Zero Asset Managers initiative, which saw Vanguard depart late in 2022.