ESG investment in insurance-linked securities (ILS)

Hiscox has announced the launch of a new environmental, social and goverance (ESG) focused underwriting syndicate at Lloyd’s, for which it will look to partner with third-party capital partners in time.

Chinese insurance giant Ping An Property & Casualty Insurance continues to develop innovative parametric insurance products that support the green and blue economy, with the latest being a parametric index trigger product that provides ocean carbon sink risk protection.

Equity analysts at Goldman Sachs see climate change both as a driver of increasing underwriting opportunities for the global insurance and reinsurance market, as well as a key factor that can prolong the current hard market pricing environment.

The Bermuda Monetary Authority (BMA) is to continue a focus on responsible solutions in insurance, reinsurance and investment funds in 2023, with products that address climate change and protection gaps a particular priority.

Parameter Climate, the parametric climate focused underwriter and advisor, has achieved profitability in its first year and now moves forward with an appetite for growth into parametric climate, catastrophe and weather risk transfer, with additional capital sources one avenue that can drive expansion.

Italian and global insurance giant Assicurazioni Generali S.p.A. has disclosed that the capital freed up by its first green catastrophe bond issuance, the €200 million Lion III Re DAC transaction, was allocated to refinance a green asset and this helped avoid greenhouse gas emissions.

SIGLO Capital Advisors AG, a Swiss based alternative asset advisory specialist with an insurance-linked securities (ILS) practice, has hired well-known catastrophe bond and ILS product specialist Siti Dawson as a Senior Analyst.

From January 1st 2023, specialty insurance and reinsurance underwriter Beazley’s Smart Tracker special purpose arrangement (SPA) syndicate 5623 will now become a full market-facing syndicate at Lloyd’s.

According to international broking group Howden and specialty insurance and reinsurance firm Fidelis, writing business for higher ESG rated counterparties tends to lead to better underwriting performance.

Twelve Capital, the Zurich-headquartered catastrophe bond, insurance-linked securities (ILS) and reinsurance linked investment fund manager, has announced a number of new board appointments to bring additional senior experience to the company.