ILS NYC 2021

The arrival of the global pandemic shone a light on the fragility of the infrastructure that supports small and medium sized enterprises (SMEs) across the world, but with the use of artificial intelligence (AI) and machine learning, there’s an opportunity waiting to be unlocked, according to OTT Risk’s Chamath Palihapitiya.

Overall, the insurance-linked securities (ILS) market is maturing in an attractive manner but as new sponsors and jurisdictions enter the fold, there’s a need for continued education, according to global law firm Mayer Brown.

The deepening of the world’s understanding, measurement and valuation of climate risks is going to drive a massive demand for contingent risk capital, which parametric triggers and insurance-linked securities (ILS) will be well-suited to serve, Rowan Douglas of Willis Towers Watson explained during our ILS NYC event this week.

Widespread uncertainty remains around much of the ultimate industry loss from the ongoing Covid-19 pandemic, but if the numbers reach as high as some of the early estimates, it’s likely to be for unexpected reasons, says Tom Johansmeyer, Head of PCS.

The World Bank sees the insurance-linked securities (ILS) sector providing significant benefits for member country governments, but elements of the catastrophe bond structure could be adapted to make it an even more attractive tool for sovereign disaster risk financing.

Thanks to popular demand and a number of stars aligning, we are delighted to bring you two additional broadcasts from our virtual ILS NYC 2021 conference today.

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.

The next phase of the catastrophe bond market will see a shift from the structure’s use for deep capacity and as a risk management tool, to being viewed as a more permanent form of capital, according to Cory Anger, GC Securities.

The focus of the insurance-linked securities (ILS) market on short-tail catastrophe risks has resulted in a funding gap for longer-tail exposures, but as investor comfort increases, there’s an opportunity for the market to expand its remit.

The utilisation of a rated balance-sheet by an ILS fund manager can help “to smooth out” some elements for insurance-linked securities (ILS) investors, says Michael Stahel, Partner at LGT ILS Partners.