Green insurance-linked securities

In a recent interview with Artemis, Ocorian Client Director Sherman Taylor explored how the insurance-linked securities (ILS) industry can incorporate ESG into its operations and what benefits this might bring.

Alpina Capital, through its Alpina Fund Management S.A. unit, has taken over the management and distribution of the Falcon Private Bank catastrophe bond funds and is transforming them into ESG compliant strategies under the EU taxonomy.

The insurance-linked securities (ILS) marketplace could put itself at risk of a potentially damaging “credibility gap” if it over promises on environmental, social and governance (ESG) alignment, Synpulse Management Consulting has warned.

The already large environmental, social and governance (ESG) investor community is poised to expand further, but in order for the insurance-linked securities (ILS) sector to really take advantage of the opportunity it needs to address certain challenges, says Marcus Rivaldi, Managing Director of Analytics, Twelve Capital.

Today, there’s a significant amount of capital looking to be deployed in an environmental, social, and governance (ESG) friendly way, which represents a material opportunity for the insurance-linked securities (ILS) asset class, says Barney Schauble, Head of Labs at Nephila Advisors.

This roundtable discussion was convened by specialist insurance-linked securities (ILS) and catastrophe bond investment manager Plenum Investments and moderated by Artemis in December 2020.

Patrick Roder, Associate Partner and Global Head of ILS at Synpulse Management Consulting, joined us recently to discuss the publication of a study analysing the results of our survey on the maturity of environmental, social, and governance (ESG) practices in the risk transfer, reinsurance and insurance-linked securities (ILS) markets.

Market participants across risk transfer, including insurance-linked securities (ILS) and reinsurance, have a lot to gain from further operationalising Environmental, Social and Governance (ESG) within their core businesses, our now published study reveals.

Both the understanding and adoption of environmental, social, and governance (ESG) practices and compliance in the insurance-linked securities (ILS) industry is growing in prominence, but as noted by industry experts at a recent roundtable event, there’s more work to do.

Two insurance-linked securities (ILS) funds operated by Zurich based specialist catastrophe bond and ILS investment manager Plenum Investments have been accredited with a sustainability FNG Label by the German “Forum Nachhaltige Geldanlagen e.V.”