Tenax Capital, the London based hedge fund investment manager that operates a catastrophe bond strategy, has joined the insurance-linked securities (ILS) industry working-group that focuses on enhancing environmental, social and governance (ESG) transparency in the ILS market.Read the full article
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.
Parameter Climate, the parametric climate risk transfer focused underwriter and advisor, has completed a management buyout of seed investor SiriusPoint, as the latter continues to reduce its equity ownership in program and MGA businesses.Read the full article
Although there are investors waiting on the side-lines of the insurance-linked securities (ILS) market with an interest in responsible transactions, there’s still a need for a minimum return which outweighs the importance of liquidity and diversification, according to industry experts.Read the full article
The ILS ESG Transparency Initiative has been formed as a new insurance-linked securities (ILS) industry group focused on enhancing environmental, social and governance (ESG) transparency in the ILS market, as the Swiss-based working group of ILS managers expands with the addition of international members.Read the full article
Plenum Investments, the Zurich based specialist catastrophe bond and insurance-linked securities (ILS) investment manager, has announced the appointment of Dr. Andreas Rickert as a new member of its Board of Directors.Read the full article
London headquartered specialty insurance and reinsurance firm Beazley is moving its ESG consortium out of the Lloyd’s Syndicate In A Box (SIAB) framework to sit under its third-party capital backed Smart Tracker syndicate 5623.Read the full article
Despite the backlash against environmental, social and governance (ESG) investing in certain parts of the United States and elsewhere, capital raising for ESG investments, funds and strategies continues apace, and for investors ESG remains a key driver of allocations.Read the full article
The design of the recently announced Climate Resilient Development Bond (CRD Bond), an insurance-linked security (ILS) hybrid that integrates catastrophe bond protection and investment in climate resilience, was driven in part by the trend towards risks becoming uninsurable, according to Julian Enoizi, Global Head of Public Sector at Guy Carpenter.Read the full article
A new financial structure that can provide community-based climate insurance or risk transfer protection from the capital markets, while incorporating resilience, advanced funding for loss-prevention and mitigation, through an insurance-linked security (ILS) designed structure has been proposed.Read the full article
Bill Dubinsky, Chief Executive Officer of Gallagher Securities, has cautioned that building in more ESG features is potentially helpful but “by no means a guaranteed win-win” for the catastrophe bond product, or for ILS more generally.Read the full article