Insurance Linked Securities Interviews

In emerging Asia, there are opportunities for insurance-linked securities (ILS), despite the perception that reinsurance markets across the region remain in a developing phase, according to William Ho, Chief Executive Officer (CEO) of MS Amlin Asia Pacific, and Head of Reinsurance for Asia, MS Amlin.

The insurance-linked securities (ILS) market and its fund managers are adapting their strategies following several years of heavy catastrophe losses, with their experiences in dealing with trapped ILS collateral driving them to evolve the way ILS fund side pockets are set and dealt with, Brian Desmond of Horseshoe told Artemis.

All of the pieces are in place for growth in the insurance-linked securities (ILS) asset class across the Asia region, it’s just a matter of time, as well as pricing and terms of available investments, according to a panel of experienced pension fund investors who allocate to the ILS sector.

Investments in non-catastrophe insurance-linked securities (ILS) can bring some significant benefits to investors, but for this market to develop in Asia, the region’s primary insurance market needs to evolve, according to industry experts.

To the reinsurance and insurance-linked securities (ILS) market, earthquake risk is one of the biggest peril threats in the world and one that the market can’t be complacent about, according to Paul Wilson, Head of Non-Life Analytics at Securis Investment Partners.

After several years of rate and term improvements, notably in the property catastrophe arena, there are signs the market is levelling off. But generally, returns in the insurance-linked securities (ILS) market remain attractive, according to industry experts.

If Singapore and Hong Kong are able to establish themselves as valuable domiciles for insurance-linked securities (ILS) business, it should spur local reinsurers to develop capabilities as the investor base swells in tandem.

While the Hong Kong regulator’s insurance-linked securities (ILS) grant scheme is expected to attract sponsors to the region, the new regime must show its competitiveness against existing and established ILS domiciles, say industry experts.

Shevawn Barder, Chief Executive Officer (CEO) of reinsurance MGA, AM RE Syndicate Inc., discussed recently how the US specialty risk-focused firm is keen to broaden its underwriting model with the right capital partners.

Mr. Simon Lam, Executive Director, General Business at the Hong Kong Insurance Authority, expects the region’s new ILS regime to “hit the ground running” as mainland China’s insurance market growth continues apace.