Insurance Linked Securities Interviews

Secondary perils require a particular level of focus, investment and effort, when it comes to modelling risks of insurance-linked securities (ILS) and reinsurance portfolios, Aeolus Capital Management executives told us recently.

The insurance-linked securities (ILS) investment industry is experiencing a shift driven by changing investor priorities and this is playing to the strengths of firms with deep expertise such as Hiscox, according to Vincent Prabis.

At the January 2022 reinsurance renewals, some buyers of protection were left surprised after insurance-linked securities (ILS) fund capacity proved to be even less abundant than previously assumed, according to James Vickers, Chairman International, Reinsurance at Gallagher Re.

For our latest Artemis Live video interview we wanted to understand how the industry loss from Hurricane Ida has been developing and explore the complexities in the reconstruction and recovery that could impact just how high the insurance and reinsurance market loss could rise.

With the completion of its acquisition of the treaty reinsurance business of Willis Towers Watson, Arthur J. Gallagher and its reinsurance unit Gallagher Re has an opportunity to accelerate sales of insurance-linked securities (ILS), its senior executives told Artemis.

The ILS sector has seen an increased focus on the importance of having a suitable board of directors in place for Special Purpose Insurers (SPI), according to Louise Charleson of Ocorian.

Following the completion of several transactions featuring a collateralized financing solution for intellectual property assets, this emerging asset class could be a massive opportunity for ILS funds and their investors, according to Lewis Lee, CEO of Aon’s Intellectual Property Solutions.

At reinsurance renewals in 2022, there is expected to be a an overarching focus on achieving more sustainable pricing levels. But there will also be different challenges faced and outcomes achieved, depending on where in the reinsurance risk tower underwriters are focused, according to TigerRisk’s Head of North America, Wade Gulbransen.

The role of the capital markets in the world’s transition to a low carbon economy as we look to tackle the threats of the changing climate, is “absolutely fundamental,” according to Rowan Douglas, Head of the Climate and Resilience Hub at Willis Towers Watson (WTW), and Chairman of Willis Research Network.

After another year of significant catastrophe loss activity, relative performance is set to be the important measure amongst ILS managers, and for 2022, Securis Investment Partners sees an opportunity to target retrocession, which it believes is ripe for reimagining.