Insurers want to be able to invest more money in the Dutch arms industry

Insurers want broader opportunities to invest in the Dutch defense industry. The insurers are discussing this with each other and with the government.

The Association of Insurers would like to see a bond or defense fund so that insurers can invest their money responsibly. writes the FD. Insurer ASR is adjusting its policy to also invest in companies related to the arms industry.

Financial institutions such as insurers are reluctant to invest in weapons and other defense equipment. Investments are not allowed in companies that make cluster bombs or nuclear weapons. Money must also not be invested in companies that directly or indirectly supply sanctioned countries.

Yet social pressure on large financial institutions to invest more is growing. Due to increasing geopolitical tensions and the war in Ukraine, the Netherlands wants to spend more on defense. That is why insurers and the government are conducting discussions to see whether investing in defense is possible after all.

The dilemma between security and human rights is central, says the Association of Insurers: “Insurers recognize that the defense industry plays a crucial role in guaranteeing security in Europe, but also carries an increased risk of human rights violations.”

In concrete terms, the Association of Insurers advocates a defense bond or a defense investment fund. With a bond, investors lend money to the government. In this case, an insurer can then lend money to enable defense expenditure.

This makes it possible for insurers to invest money in defense equipment for which there is political and social consensus at that time that it is a legitimate investment.

There will be further discussions between the financial institutions and the government in January. The option of a defense bond is therefore discussed.

Insurer ASR today announced that it wants to go one step further. The insurer has adjusted its investment policy, making it possible to invest directly in a Dutch defense company under strict conditions.

ASR sees it as a moral responsibility to invest in defense: “This decision was taken following a call from the Dutch government to Dutch institutional investors to make investment capital available to strengthen the European defense industry.”