05-05-2021 · Insight

The road to impact investing – a journey for insurers

Sustainable investing has risen to the top of insurers’ agendas – but how to make an impact with it?

Many insurance companies are keen to embrace more sustainable ways of investing their clients’ premiums, as combatting climate change grows in importance, and Covid-19 continues to dominate. As such, they are seeking strategies that embrace environmental, social and governance (ESG) factors.

What may be still missing though is how to make an impact in the process. This can be done by impact investing, which is defined as “investments in companies, organizations and funds with the intention of generating a social and environmental impact, alongside a financial return.”

And there are various ways of doing it, such as through thematic strategies covering issues such as climate change, to more bespoke vehicles that target the Sustainable Development Goals. These offerings are structured not only as ‘off-the-shelf’ investment funds, but also as customized segregated accounts. This means insurers can tailor the strategies according to their sustainability agendas.

Important information

This information is for informational purposes only and should not be construed as an offer to sell or an invitation to buy any securities or products, nor as investment advice or recommendation. The contents of this document have not been reviewed by the Monetary Authority of Singapore (“MAS”). Robeco Singapore Private Limited holds a capital markets services license for fund management issued by the MAS and is subject to certain clientele restrictions under such license. An investment will involve a high degree of risk, and you should consider carefully whether an investment is suitable for you.