Artemis Live: Interview with Peter Giacone, Kroll Bond Rating Agency (KBRA)

We’ve published a new Artemis Live video interview, featuring Peter Giacone, Managing Director and Global Head of Insurance at Kroll Bond Rating Agency (KBRA), who joined us to discuss evolving investor appetites and the ILS market.

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.

Giacone went into some detail as to how how investor appetites in the capital markets have changed due to the coronavirus pandemic and what this means for the insurance-linked securities (ILS) sector, as well as for insurance and reinsurance in general.

Giacone explained that financial markets in general are seeing large flows from investors and that part of this interest is being shown to the insurance and reinsurance space.

But with traditional investment classes highly volatile, institutional investors have been looking closely at alternatives, especially those that exhibit lower correlation.

As a result, the insurance-linked securities (ILS) market and direct investments into reinsurance risk bearing vehicles or funds are looking incredibly attractive at this time.

Giacone said that, “People have to adapt and that spells opportunity. I think this asset class in particular is going to start to look more and more attractive.

“A longer-term investor is going to look at ILS and say, you may have some temporary dislocations in the market when you have a high correlation, but over the long-term they’re going to see that this is an asset class that clearly behaves completely independent of what’s going on in other markets for the most part and therefore provides a tremendous opportunity.”

We also discussed the use of ratings in ILS markets and catastrophe bonds, with Giacone explaining that he sees the potential for entire portfolios of ILS assets to be rated, rather than just individual bonds and he described how this could prove attractive to major investors such as life insurers.

Peter Giacone is participating in our KBRA sponsored live webcast on September 10th 2020. Register for free to attend.

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 these 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.

We’re offering sponsorship opportunities for our broadcasts, including pre-roll adverts or simply sponsor the entire series, as well as facilitating one-off sponsored webinars and virtual events including roundtables, to help companies access our market-leading audience. Please get in touch to discuss.