Insurance Australia Group commits to achieving net zero

Insurance Australia Group (IAG) has joined 28 other leading insurers worldwide, representing close to 15 per cent of the world’s premium volume.

Members of NZIA are striving to transition their insurance and reinsurance underwriting portfolios to net zero greenhouse gas (GHG) emissions by 2050, aligning with the Paris Agreement on Climate Change in staying consistent with a maximum global temperature rise of 1.5⁰C above pre-industrial levels by 2100.

Nick Hawkins, IAG CEO and managing director, said that “weather and climate are core business for IAG,” working for nearly 20 years to understand the impacts of climate change on communities and businesses as well as the ways they can “help reduce climate risk for our customers.”

“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,” Mr Hawkins stated.

The IAG joining NZIA further bolsters their Driving to Zero focus area outlined in its Climate and Disaster Resilience Action Plan, which includes IAG delivering on their commitment to leverage its underwriting and investment approach towards net zero emissions.

IAG has also set an intermediate target of 50 per cent emission reductions by 2030 along with the net zero goal by 2050.

IAG will work with the world’s leading insurers to produce industry-appropriate methodologies and strategies to support a just transition to net zero through their participation in the NZIA since there are currently no existing ways to measure and disclose net zero Scope 3 emissions in relation to customers’ insured assets. 

The insurer has been carbon neutral in regards to Scope 1 and 2 emissions since 2012.

Earlier this week, IAG revealed it had received 3,895 claims relating to the severe weather and floods across NSW, mainly for storm damage to homes, property and vehicles.