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.

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Fathom & Reask partner on combined wind and flood risk models

Specialist flood risk modeller Fathom, and Reask, a climate analytics firm that leverages machine learning techniques, have partnered to create new, combined wind and flood risk models for re/insurers, banks, and ESG-focused investors. Initially, this collaboration will see each company permitted to sell the other's products and services to both new read the full article →

Beazley’s third-party capital backed Smart Tracker to transition to full-syndicate

Beazley has announced this morning that its Smart Tracker special purpose arrangement (SPA) syndicate 5623 will now become a full market-facing syndicate at Lloyd's. The third-party capital backed Smart Tracker is one of Beazley's underwriting structures that attracts institutional investor capital, akin to an insurance-linked strategy, that augments its underwriting capacity read the full article →

Bermuda’s re/insurance & ILS sector grows focus on ESG: Ocorian

With environmental, social and governance principles (ESG) growing in relevance in Bermuda, Sherman Taylor, Ocorian’s Head of Capital Markets in the country, has shared his views on the matter as part of Artemis’ Q2 2022 Catastrophe Bond & ILS Market Report. “A corporate culture based on environmental, social and governance principles read the full article →

Swiss ILS fund ESG initiative can drive desired change: Piemonte, BKC

The environmental, social and governance (ESG) transparency initiative being undertaken by a leading group of Swiss-based insurance-linked securities (ILS) investment fund managers, has the potential to drive the desired change investors such as the Bank für Kirche und Caritas have been looking for, according to Tommy Piemonte. Piemonte is the Head read the full article →

Swiss ILS fund managers collaborating on ESG transparency

Artemis has learned that a group of Switzerland-based insurance-linked securities (ILS) investment fund managers have been collaborating to develop a data transparency proposal to help enhance environmental, social and governance (ESG) in the ILS market. After what we understand to be a few months of work, an initial ESG data request read the full article →

Gallagher Re hires Bavandi for Public Sector, Parametrics & Climate Resilience

Gallagher Re, the reinsurance broking arm of the broader Gallagher group, has announced the hiring of Antoine Bavandi who joins the company from the World Bank to lead a new practice focused on the public sector, parametric risk transfer & climate resilience solutions. Bavandi takes the role of Global Head of read the full article →

ESG policies becoming critical in private capital markets

Investment funds in the private capital markets sector increasingly need to be seen to be quickly moving towards, or having already implemented, a rigorous environmental, social and governance (ESG) policy, or they could risk falling outside of many institutional investor's consideration. Environmental, social, governance (ESG) considerations are becoming a significant part read the full article →

SBAI publishes responsible investment guidance for ILS funds

The Standards Board for Alternative Investments (SBAI) has published a new guidance document that covers responsible investment within the insurance-linked securities (ILS) fund management industry. The SBAI had already ramped up its focus on environmental, social and governance (ESG) alongside responsible investing within various asset management segments. This included the publication of read the full article →

SCOR’s new Atlas Capital Re cat bond “integrates ESG considerations”

France headquartered global reinsurance firm SCOR said this morning that its successfully issued $240 million Atlas Capital Reinsurance 2022 DAC (Series 2022-1) catastrophe bond has environmental, social and governance (ESG) considerations integrated into it. As we've been reporting, SCOR came to market with its latest catastrophe bond with a $150 million read the full article →

Climate risks could drag on re/insurers annual profits by 10-15%: UK PRA’s Woods

Having now published the results of its Climate Biennial Exploratory Scenario (CBES), looking at the financial risks posed by climate change for the largest banks and insurers operating in the UK, the Bank of England believes that over-time climate risks could become a persistent drag on earnings. While projections of climate read the full article →