The Net Zero Insurance Alliance (NZIA), a global coalition that formed with the intention of helping the insurance sector curb greenhouse gas emissions, has disbanded and restructured after criticism of its ESG initiatives by Republican officials in the United States. This decision comes after at least seven members of the NZIA – including Swiss Re, Munich Re, Zurich Insurance and Hannover Re – left the group last year.

According to the United Nations Environment Programme (UNEP), the group has relaunched as the Forum for Insurance Transition to Net Zero (FIT). The initial priorities for the FIT include:

• Advancing frameworks for net-zero insurance metrics and voluntary targets, as well as developing new net-zero insurance concepts.
• Developing a net-zero transition plan framework for insurance market participants.
• Engaging with the real economy on the development of net-zero transition plans by corporates across different sectors.
• Tackling challenges and opportunities to develop insurance solutions and taxonomies that would support the net-zero transition.

"Chaired by the UN Environment Programme (UNEP), the FIT will work with insurance market participants (e.g. insurers, reinsurers, brokers) and engage with insurance regulators and supervisors, net-zero standard-setters and initiatives, the scientific and academic community, civil society, and other key stakeholders (e.g. sustainability disclosure initiatives, real economy actors)," the UNEP explains on its website. "The creation of the FIT is a major new opportunity for UNEP, the insurance industry and key stakeholders to advance net-zero insurance thinking and practices. The FIT takes into account the experience gained with the Net-Zero Insurance Alliance (NZIA) that first transformed net-zero insurance from theory to practice."