Another insurer has left the UN-convened Net Zero Insurance Alliance, but this time the company attributed its departure to politics.

Earlier this month, specialty insurer Beazley and French mutual Matmut resigned as members of the alliance following a slew of departures by several major re/insurers. The NZIA ended last week with 14 members from a total of 31.

By the end of this week, Canada’s Beneva, who joined just two months ago, disappeared from the NZIA membership list.

Many re/insurers departed from the alliance without providing a reason, but Munich Re openly said it left because of antitrust risks, which usually affect those with significant exposure to the US. 

Despite Beneva’s lack of exposure to the US, it decided to withdraw from the NZIA “because the growing political debate concerning environmental, social and governance criteria in the United States is a distraction from the actions around which the company wishes to rally”.

The Canadian mutual said it continues to believe in the necessity of transitioning to a greener, cleaner and sustainable economy.

“Beneva is committed to reaching net zero emissions by 2050 for its insurance portfolio, its operations and its investments, notably through its UN Principles for Sustainable Insurance membership,” it said. 

The NZIA exodus has caught the attention of many in the insurance industry. Panellists at a discussion group during Insurance Europe’s International Conference in Paris on 7 June were asked to comment on the issue.

Philippe Dumont, chief executive of Crédit Agricole Assurances – one of the remaining members of the NZIA – said in addition to the NZIA, the firm is also a member of the Net Zero Asset Owner Alliance.

He added. “We think these alliances are very useful to exchange methodologies, to exchange data. Of course, we have to take care of regulation and antitrust issues, but we still feel they are very useful. It's easier to say when you are not a US insurer… but one way or another, these alliances are ready to find a way to work together not to make more money, just [as] a way to exchange the best tools to try to mitigate climate change.”

Thierry Philipponnat, chief economist at non-profit organisation Finance Watch, set up to counter the lobbying power of the financial sector, argued that the legal aspects of the issue needed to be addressed.

“If we collectively have built a system where our law prevents us from addressing sustainability issues, we're running as a society into a brick wall, and we need to change the law,” he said. 

“I can understand, [if you] put me in charge [and if I am] the CEO of an insurance company, [I would say] ‘Look, I have a huge litigation risk, I’m not taking the risk’. I understand that. Let's look at society in general. This is absurd. I'm not saying it's an absurd decision from the company standpoint, but from a society standpoint, we have a serious problem.”

The alliance now has 13 members: