QBE commits $100m to social impact investment in global-first initiative
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QBE Insurance Australia has committed to a minimum of $100 million as part of a global-first initiative to fund socially progressive projects in Australia and around the world.
The initiative, called Premiums4Good and first of its kind for the insurance industry, supports investments that will create a positive social and environmental change at no additional costs to the policyholder. This will include affordable housing, renewable energy and healthcare.
QBE Australia and New Zealand CEO, Vivek Bhatia, said the insurance industry could drive social and environmental change and generate financial returns for investors.
“Research shows Australians are increasingly mindful about what they invest in. We look at an investment, we want a return, but know investments can do more,” Bhatia said. “And fortunately, with more social and environmental investments available, insurance businesses can do both.”
The initial $100 million is expected to increase in the future, with the pool of premiums expected to achieve financial and socially responsible returns.
Such investments include The Benevolent Society Social Benefit Bond which will support up to 400 Australian families that are at risk of having their children removed and placed into out-of-home care, and the World Bank IFC’s Green Board and their focus on renewable energy and climate-smart projects in developing countries.
According to the latest Responsible Investment Association Australasia (RIAA) report, 92 per cent of Australians expect their superannuation and other investments to be invested responsibly and ethically, with 7 out of 10 people investing in responsible super funds.
The insurance initiative is also expected to appeal to millennial Australians as they are expected to constitute up to 75 per cent of the workforce by 2025. The RIAA report indicates millennials would consider switching providers if their current investor is engaged in activities that are inconsistent with their values.
Rosemary Addis, Chairperson of The Australian Advisory Board on Impact Investing, said: “QBE’s launch of Premiums4Good signifies a progressive step for the insurance industry. The initiative highlights the growing trend of institutions making investment choices based on their impact on society as well as financial performance.”
