Insurance Linked Securities Interviews

Parametric insurance solutions continue to be more broadly adopted, but the technology behind their triggers is also critical and solutions are developing fast, Callum Higgins from Moody’s RMS and Martin Hotz from Swiss Re Corporate Solutions explained in a recent video interview.

The fourth session of the day at our Artemis ILS NYC 2023 conference, held in New York on February 10th, saw industry leaders discussing the expansion of the insurance-linked securities (ILS) asset class and what new or emerging opportunities are now available to investors.

Factorial Funds, a Los Angeles headquartered global asset manager, historically better known for investment strategies with a technology, venture capital and growth equity focus, is entering the insurance-linked securities (ILS) space, while also looking at other reinsurance opportunities as well.

The design of the recently announced Climate Resilient Development Bond (CRD Bond), an insurance-linked security (ILS) hybrid that integrates catastrophe bond protection and investment in climate resilience, was driven in part by the trend towards risks becoming uninsurable, according to Julian Enoizi, Global Head of Public Sector at Guy Carpenter.

Fleming Insurance Holdings has received positive feedback from the investor community as it works towards the launch of its insurance-linked securities (ILS) platform focused on the emerging and exciting casualty ILS space, explained Eric Haller, Chief Executive Officer (CEO).

Two competing factors are set to drive conversations during the 2023 Atlantic hurricane season, as well as risk. But there are other important areas insurance, reinsurance and ILS market interests should remain alert to, according to Jeff Waters of Moody’s RMS.

Because the first catastrophe bond sponsored by the Toka Tū Ake EQC, or New Zealand Earthquake Commission, was structured to meet its Boards ambitions of being “complementary” to the rest of its reinsurance tower, it sets the scene for future issuances, EQC’s CEO and Head of Risk Financing told Artemis in an exclusive interview.

With more than two decades of experience in managing third-party reinsurance capital, and the recent creation of its casualty and specialty dedicated vehicle, Bermuda-based RenaissanceRe has become somewhat of a one-stop shop for ILS and reinsurance, according to Chris Parry, Global Head of Capital Partners.

Captive insurance structures are still largely a self-insurance tool for their sponsors, but there is a market there for captives that might look to offload risks, or books of business, towards the end of their lives, David Gibbons of PwC Bermuda told us in a recent video interview.

Bill Dubinsky, Chief Executive Officer of Gallagher Securities, has cautioned that building in more ESG features is potentially helpful but “by no means a guaranteed win-win” for the catastrophe bond product, or for ILS more generally.