The importance of environmental, social & governance (ESG) will grow for the insurance-linked securities (ILS) market and cascade through to the service provider level as well, according to HSBC executives we interviewed recently.
In the next in our series of sponsor showcase video interviews for the upcoming Artemis ILS NYC 2022 conference (held April 22nd in New York City), we welcomed Tom Mackay, Senior Vice President and Vivian Ly, Client Relationship Manager, both from one of our Silver sponsors for the conference, global banking group HSBC.
HSBC is one of the largest banking groups in the world and offers a range of services that are used within ILS transactions, not least escrow and corporate trust, as well as adjacently across the insurance and reinsurance world.
But with its global scale, it’s always interesting to hear the views of a major player in finance on a niche sector like insurance-linked securities.
Tom and Vivian discussed a range of issues with us during this interview, but one highlight of the interview is HSBC’s expectation that the importance of environmental, social & governance (ESG) will grow for the ILS market and cascade through to the service provider level as well.
Mackay explained, “ESG is everything you’re hearing about these days in the ILS market and that’s not going away, that’s only going to grow.
“We think that drives the need for additional transparency in the risks that are being transferred, so the investors can see the ESG qualities of that.
“We’re hearing more and more from our clients about what kind of options there are for them to invest the collateral that’s posted in these deals, so what sort of ESG money market funds are available and things like that.
“We even believe, and we’re starting to see a small trend towards this, that it will translate into the service providers like ourselves, what are our ESG credentials and how are we responding to those requirements.
“In short ESG I think is just beginning. We’ve heard a lot about it, but a lot more to come.”
Hear more on ESG in the ILS market during one of our panel discussions at the upcoming Artemis ILS NYC 2022 conference in New York on April 22nd (get your ticket today).
For details and to register for the conference, visit the event website: www.artemis.bm/ils-nyc-2022/.
The full video interview is embedded below and can also be viewed in full, along with previous Artemis Live video interviews here.
You can also listen in audio to our interviews by subscribing to the Artemis Live podcast here.
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