Mercer, the global consulting, investment and outsourcing firm, has recommended that investors revisit alternative investments if they are looking for boosted returns from their portfolio. Mercer highlights a solid opportunity in alternative investments as a great way to find good returns while being uncorrelated to traditional equity type investments.
Specifically Mercer recommends insurance-linked securities as an asset class worth investing in, citing the fact that capital is still at a premium as one of the reasons for their attractiveness. Discussing catastrophe bonds; they cite the fact that insurers are willing to pay large premiums to secure the funds required to strike these deals as a the reason for the investment opportunity.
There is so much investor interest in the market right now that issuers are going to have to get deals launched before the investment opportunity runs out. It’s great to see so much interest in the market right now. The amount of discussion surrounding investing in ILS is a great indicator of the health of the market. Artemis itself has seen a four fold increase in visitors to the site in the past 6 months and massive increases in referrals from search engine queries about investment opportunities, that really shows the rising popularity of this market.