Artemis Live: Interview on ESG in risk transfer & ILS with Patrick Roder, Synpulse

Patrick Roder, Associate Partner and Global Head of ILS at Synpulse Management Consulting, joined us recently to discuss the publication of a study analysing the results of our survey on the maturity of environmental, social, and governance (ESG) practices in the risk transfer, reinsurance and insurance-linked securities (ILS) markets.

During the third-quarter of 2020, Artemis teamed up with boutique consulting firm Synpulse to conduct this survey on the maturity of ESG practices within the risk transfer, reinsurance and ILS markets.

The resulting study is now available to download from Synpulse here and we spoke with Patrick Roder to get a little more insight into some of the findings.

All of our Artemis Live video interviews can be accessed directly from our YouTube Channel and we have more interesting discussions with leaders of the ILS and reinsurance industry to come over the next few weeks.

Market participants across risk transfer, including insurance-linked securities (ILS) and reinsurance, have a lot to gain from further operationalising Environmental, Social and Governance (ESG) within their core businesses, the now published ESG study reveals.

During this interview, Roder explained why Environmental, Social and Governance (ESG) factors have become such a hot topic in risk transfer and why this is relevant to the insurance-linked securities (ILS) market as well.

“The concepts that stand behind ESG are not new at all. In fact sustainability is at the very heart of the risk transfer market.

“Some players might have had a more narrow definition of what that means. But others have pretty early on already had a broad definition and actually also been driving the definition of sustainability themselves,” Roder said.

Right now ESG is a very important topic in both ILS and reinsurance markets, with participants taking steps to improve their ESG standing and investors increasingly focused on knowing how participants are implementing ESG standards.

Roder went on to discuss why the importance of ESG is rising in the risk transfer marketplace.

“So it’s not like this subject has become suddenly a hot topic for the reinsurance and ILS market, but it has built up overtime,” Roder continued.

“It’s true that in ILS and reinsurance it has been a bit more recent compared to other parts of the financial industry, but that’s probably just because the asset class of ILS and the underwriting side of the insurance and reinsurance industry is a bit more complex, when you look at the value chain, all the parts you have to look at. It’s much more complex than analysing an equity investment.

“So I think the market needed some time, to build up this pressure and also the know how to put more focus on the topic of ESG.”

The interview went on to discuss the inherent ESG qualities of reinsurance and ILS, but also why true ESG compatibility requires much more transparency and disclosure in the market chain.

The full video interview is embedded below and can also be viewed in full, along with previous Artemis Live video interviews, over on our YouTube channel.

You can also listen in audio to our interviews by subscribing to the Artemis Live podcast here.

We will continue to bring you these interviews with leaders of the ILS and reinsurance industry on an ad-hoc basis, as and when our time and that of our contacts allow.

All of our Artemis Live video interviews have a focus on reinsurance, ILS and the efficiency of risk transfer and can be accessed directly from our YouTube Channel.

You can also listen in audio to these interviews by subscribing to the Artemis Live podcast here.

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