AIFAM, an investment firm focusing on alternative assets and strategies who have an insurance-linked securities fund, have signed up to use AIR Worldwide’s CATRADER® tool to help them analyse catastrophe reinsurance, ILS and catastrophe bonds.
From the Business Wire press release:
“Diversification is an area of focus for us and AIR’s CATRADER supports the analytics we use for constructing an optimal portfolio that may include catastrophe bonds with a range of trigger types, including indemnity, index and notional portfolio-based triggers,” said Teruhisa Shimbara, Portfolio Manager at AIFAM. “CATRADER also makes it easy to quantify the correlations that exist across multiple catastrophe bonds within a portfolio, which allows us to fine-tune our desired risk/return profile.”
As risk modelling tools advance, becoming easier to use and understand, it will help investment managers to access the insurance-linked securities marketplace with more confidence in their own understanding of the products involved. This kind of confidence is essential to encourage uptake and issuance going forwards.