Swiss Re Insurance-Linked Fund Management

PCS - Emerging Risks, New Opportunities

ESG investment in insurance-linked securities (ILS)

ESG investing is a growing focus for the insurance-linked securities (ILS) market.

Insurance-linked securities (ILS) are often assumed to be naturally compatible with and applicable to environmental, social, governance (ESG) investment mandates and standards.

Certainly, ILS such as catastrophe bonds have ESG relevant features, in providing disaster risk financing to support recovery and repair after severe weather events or natural disasters.

But the true application of ESG investment standards to reinsurance and ILS assets requires much deeper thought and the industry continues to work towards provision of truly ESG compatible ILS investment opportunities.