"Australian Ethical intensifies dialogue with QBE regarding insurance of fossil fuel projects"
Australian Ethical Presses QBE on Fossil Fuel Underwriting
Australian Ethical, a superannuation fund and investment manager with over $13 billion under management, has been engaging with Australian insurer QBE over the latter's fossil fuel underwriting policies since 2016. Despite repeated calls for disclosure and restrictions, QBE continues to underwrite fossil fuel projects.
In 2019, Australian Ethical co-filed a shareholder resolution at QBE, leading to a coal exposure phase-out announcement. However, QBE's policies allow underwriting for new oil and gas projects without an assessment for Paris alignment. This has prompted Australian Ethical to question whether QBE's board and management are making decisions in QBE's long-term interests due to lack of information disclosure.
In 2023, Australian Ethical escalated its engagement by voting against the re-election of QBE's directors over fossil fuel underwriting. The fund's holdings in QBE are worth $56 million. In March 2025, Australian Ethical wrote to QBE's board seeking clarifications over fossil fuel financing and was disappointed by the response.
Australian Ethical contends that QBE's policy of continued and unrestricted fossil fuel underwriting is unjustified. The fund hopes a public outcry could step in where private conversations have fallen short, increasing pressure on QBE to do better. In its 2025 stewardship report, Australian Ethical vowed to escalate engagement with QBE further.
Fossil fuel underwriting is a critical piece of the financial puzzle for funding new oil and gas projects. Nearly 50% of QBE's underwriting portfolio is in property and agriculture, which are sectors uniquely exposed to physical risk. Australian Ethical is calling on QBE to disclose how much of its current underwriting it expects to have to exit over the next three decades due to climate change.
As of July 2025, QBE has not committed to halting or limiting fossil fuel underwriting in response to these pressures. This reflects a broader industry challenge where some insurers face rising pressure to move away from underwriting fossil fuels due to climate risks affecting profitability, but implementation of fossil fuel exclusions remains inconsistent internationally.
Australian Ethical's stance emphasizes alignment with scientific climate guidance, but QBE appears to maintain its existing underwriting policies without publicly announced restrictions or enhanced disclosures yet. Following QBE's 2025 annual general meeting, Australian Ethical has taken its engagement with QBE into the public realm.
References:
[1] Australian Ethical. (2025). 2025 Stewardship Report. Retrieved from https://www.australianethical.com.au/resources/stewardship-report/
[2] Australian Ethical. (2025). QBE Annual General Meeting Statement. Retrieved from https://www.australianethical.com.au/news/qbe-annual-general-meeting-statement/
[3] Carbon Tracker. (2021). Uninsurable: How the insurance industry is undermining the energy transition. Retrieved from https://www.carbontracker.org/reports/uninsurable/
[4] InsureOurFuture. (2021). The Uninsurability of the Fossil Fuel Industry: A Report on the Insurance Gap. Retrieved from https://uninsurabilityreport.org/
[5] UNEP Finance Initiative. (2021). Underwriting a safe and just transition: The role of the insurance industry in the energy transition. Retrieved from https://www.unep-financeinitiative.org/publications/underwriting-a-safe-and-just-transition-the-role-of-the-insurance-industry-in-the-energy-transition/
- Australian Ethical, in alignment with environmental science, believes QBE's continuous and unchecked fossil fuel underwriting is irresponsible in light of climate change, and they aim to stimulate public outcry for QBE to.
- In the realm of business and finance, Australian Ethical's investment in QBE, worth $56 million, moved into the public sphere following QBE's 2025 annual general meeting, as they continue to call for transparency regarding fossil fuel financing in environmental-science terms.
