Insurance Linked Investments

The Florida State Board of Administration, which manages the huge and roughly $180 billion Florida Retirement System Pension Plan, looks set to increase the size of its allocation to insurance-linked securities (ILS).

Parametric insurance solutions continue to be more broadly adopted, but the technology behind their triggers is also critical and solutions are developing fast, Callum Higgins from Moody’s RMS and Martin Hotz from Swiss Re Corporate Solutions explained in a recent video interview.

Insurance-linked securities (ILS) investors appear ready and willing to take on more peak peril severity catastrophe risk, if the price is right, leading analysts at Peel Hunt to suggest the ILS market is primed for growth.

Victor Insurance Managers LLC (Victor), a global managing general underwriter, has launched a third-party capital backed reciprocal insurance exchange to provide additional US property catastrophe capacity for policyholders of its subsidiary, International Catastrophe Insurance Managers LLC (ICAT).

Having only a few weeks ago estimated that as much as $8 billion of alternative reinsurance and insurance-linked securities (ILS) capital had been raised year-to-date, analysts from investment bank Berenberg have now upped that amount to ~$11 billion.

Lockton Re, the reinsurance arm of the independent broking group, has announced the hiring of former Nephila Capital executive Chris Parish who will join the company as its new Market Innovation Leader.

Numerous insurance-linked securities (ILS) fund strategies have delivered decadal high returns, at least, so far in 2023, as the higher reinsurance rate environment and elevated spreads for instruments like catastrophe bonds boost their performance.

CatX, a digital catastrophe and parametric risk exchange start-up, has been accepted into the prestigious Y Combinator accelerator program to help it build out its capabilities and scale the developing business model.

Stone Ridge Holdings Group, the holding entity for alternative asset manager with a reinsurance focus Stone Ridge Asset Management and its Longtail Re casualty reinsurance investment focused entity, has appointed former New York Life Chairman and CEO Ted Mathas as a Senior Advisor.

Insurance and reinsurance broking group Aon believes that artificial intelligence and prescriptive analytics for automated decision-making could be drivers for the creation of over $100 billion of new insurance premiums.