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This panel discussion was the second session of the day at our Artemis ILS NYC 2024 conference, held in New York on February 9th 2024.
ILS NYC 2024 was Artemis' largest insurance-linked securities (ILS) conference to-date, with over 410 registered attendees enjoying insightful debates from our expert speakers, as well as valuable networking opportunities throughout the day.
Attendees came from more than 30 countries across the globe to hear thought-provoking insights from insurance-linked securities (ILS) market leaders, all under the theme of "Growing into the higher return environment."
This audio from the second session at our ILS NYC 2024 conference features a panel discussion focused on forward-looking trends in the cat bond market after a record year in 2023, titled: Catastrophe bonds: Building on solid ground.
The panel discussion was moderated by Alex Mican, Head of PCS Global Strategy and Growth, Verisk Insurance Solutions.
He was joined by: Lynn Finkel, Chief Risk Officer, Revantage, A Blackstone Company; Michael Bennett, Head of Derivatives & Structured Finance, World Bank Treasury; Stephan Ruoff, Head of ILS, Schroders Capital; and Cory Anger, Managing Director, GC Securities.
The discussion focused on the cat bond market, looking ahead to what 2024 could bring for a market setting new records, on the back of growing demand from both sponsors and investors.
The panellists also explored what cedents really want from the cat bond market and how the investor-base can support their needs, as well as what structural opportunities could be presented and how catastrophe bonds can extend their role in disaster risk financing around the globe.
Listen to this full podcast episode for a catastrophe bond focused panel discussion with unique insights into how the cat bond market is set up for 2024, and what developments may be seen in cat bond structuring and offerings, to support both sponsor and investor needs. -
This panel discussion was the first session of the day at our Artemis ILS NYC 2024 conference, held in New York on February 9th 2024.
ILS NYC 2024 was Artemis' largest insurance-linked securities (ILS) conference to-date, with over 410 registered attendees enjoying insightful debates from our expert speakers, as well as valuable networking opportunities throughout the day.
Attendees came from more than 30 countries across the globe to hear thought-provoking insights from insurance-linked securities (ILS) market leaders, all under the theme of "Growing into the higher return environment."
This first audio recording from our ILS NYC 2024 conference features a panel discussion focused on trends on the investor side of the market, titled: Investor sentiment: Cultivating and aligning appetites.
The panel discussion was moderated by Lorenzo Volpi, Deputy CEO, Managing Partner, Leadenhall Capital Partners LLP.
He was joined by: Eveline Takken-Somers, Senior Director, Lead Portfolio Manager - Insurance Portfolio, PGGM; Jason Bolding, Global Head of Sales & Distribution, Gallagher Securities; Bernard Van Der Stichele, Senior Portfolio Manager, ILS, Healthcare of Ontario Pension Plan (HOOPP); Michael Stahel, Partner / Portfolio Manager, LGT ILS Partners Ltd.
The discussion focused on ILS investor sentiment, how appetites are developing, which instruments are receiving the most focus at this time, as well as how investor sentiment and appetites to allocate differ across catastrophe bonds and the more private ILS and reinsurance structures.
The panellists also explored what investors really want from the insurance-linked securities (ILS) asset class in 2024, including where their red lines might be, in terms of the discipline they expect to see from ILS managers
Listen to the full podcast episode of this ILS investor sentiment focused panel discussion for unique insights into how large institutional investors view the asset class at this time and how our experts see investor appetites for ILS and cat bonds developing. -
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The successful issuance of the first full cyber catastrophe bonds in late 2023 was a watershed moment and the role of risk models in helping insurance-linked securities investors get up to speed on what is still a relatively new peril to the ILS sector was key, executives at Moody's RMS told us in an Artemis Live interview.
To find out more about the role of risk models in getting the first cyber cat bonds to market successfully, we spoke with Moody's RMS executives Damini Mago - Senior Product Manager, Cyber and Alice Woolley – Lead Consultant, Risk Advisory, recently.
With now four full 144A cyber catastrophe bonds successfully brought to market, the role of risk models has been critical in helping cedents to access an important new source of reinsurance capital and for investors to understand the exposures they were being presented with.
Moody's RMS Senior Product Manager, Cyber, Damini Mago said that, "2023 saw the first cyber catastrophe bonds come to the market. It was a watershed moment bringing this to the ILS market and as by the end of quarter four, we saw for 144A cat bond transactions, securing about $415 million in protection for those sponsors.
"We feel it's the first big step to open the doors for that additional capacity that the market clearly needs, especially with the premium growth that's expected from it.
"We view this as a pivotal step in establishing cyber as a viable asset class for investors, contributing to the advancement of the cyber insurance market. So, it's definitely an exciting time."
Helping investors to gain an understanding of the peril category that is cyber and precisely what risks these cyber cat bonds cover, was a key part of the process towards opening the ILS market up for cyber cedents.
Alice Woolley, Lead Consultant, Risk Advisory at Moody's RMS explained, "It is really encouraging to see how ILS investors stepped up. They're getting to grips with this new challenge, this completely new peril, and they're supporting not just one but multiple transactions.
"So, we've seen really encouraging signs and education has been a really key focus and a key part of this long journey of getting to where we are, with the cyber transactions so far."
During the interview, Mago and Woolley also discussed the Moody's RMS cyber risk model and what it covers, as well as how it was applied to the cat bond issues we've seen so far.
The importance of robust cyber loss event definitions was also explored and the pair also commented on the range of cyber cat bond structures that the market has seen thus far, as well as their hopes for a vibrant cyber cat bond market going forwards.
Listen to the full podcast episode for more insights into the exciting new world of cyber catastrophe bonds with Moody’s RMS’ Damini Mago and Alice Woolley. -
This was the sixth session of the day at our Artemis London 2023 insurance-linked securities (ILS) market conference, held on September 5th in London, UK.
Around 240 attendees enjoyed a busy day of thoughtful catastrophe bond and insurance-linked securities (ILS) focused discussion from industry experts, as well as valuable networking opportunities.
This session features an expert panel discussing parametric triggers in insurance-linked securities (ILS) and the future potential for parametric triggers in developing capital market backed responses to growing climate risk exposures.
The panel discussion was moderated by: Rowan Douglas, CEO Climate Risk and Resilience, Howden Group.
He was joined on stage by: Stephen Lathrope, Global Head of Insurance, ICEYE; Michael Bennett, Head of Derivatives & Structured Finance, the World Bank Treasury; and Edern Le Roux, Head of ILS and Cat Modeling, Descartes Underwriting.
The panellists discussed how parametric triggers have helped insurance and catastrophe bond protection expand to some underserved areas.
We heard of the need for greater collaboration between private and public entities, as well as the growing demand for disaster insurance protection for governments and their entities.
The panellists also discussed the important role of technology in the creation of parametric triggers and how this can help drive innovation and triggers that are increasingly closely calibrated to the underlying risks that insurance and reinsurance products are protecting against.
Listen to the full podcast episode to learn more about the future of parametric triggers in the insurance-linked securities (ILS) market. -
This was the fifth session of the day at our Artemis London 2023 insurance-linked securities (ILS) market conference, held on September 5th in London, UK.
Around 240 attendees enjoyed a busy day of thoughtful catastrophe bond and insurance-linked securities (ILS) focused discussion from industry experts, as well as valuable networking opportunities.
This session features a keynote speech and Q&A with Jorge Familiar, Vice President and Treasurer, of the World Bank Group.
Familiar discussed the World Bank's role in disaster risk financing and use of insurance-linked securities (ILS) such as catastrophe bonds.
He explained that the World Bank's clients have benefited from significant risk transfer thanks to the cat bond structure over the years, saying that interest in insurance protection and leveraging capital market investor appetite to fund that, remains strong.
Familiar also discussed the role of ILS and cat bonds at the World Bank.
"We are focusing on increasing our financial capabilities and taking full-advantage of what we do in financial markets to further our mission," he explained.
Adding, "This leads to insurance-linked securities (ILS)."
Familiar further said that the World Bank is aware that countries need help to build resilience on the one hand, but also to build robust safety nets with different layers that will allow them to deal with natural disasters with different intensities and different probabilities of occurrence.
"Hence, there is clearly a space for cat bonds here," Jorge Familiar told the audience.
Listen to the full podcast episode to learn more about the World Bank Group's activities in the catastrophe bond and insurance-linked securities (ILS) market. -
This was the fourth session of the day at our Artemis London 2023 insurance-linked securities (ILS) market conference, held on September 5th in London, UK.
Around 240 attendees enjoyed a busy day of thoughtful catastrophe bond and insurance-linked securities (ILS) focused discussion from industry experts, as well as valuable networking opportunities.
This session features an expert panel discussing the need to sustain returns, across both catastrophe bonds and private ILS such as collateralized reinsurance, and ideas as to how that can be achieved.
The panel discussion was moderated by: Philipp Kusche, Global Head of ILS, Howden Tiger Capital Markets & Advisory.
He was joined on stage by: Florian Steiger, Head of Cat Bonds, Twelve Capital; Hervé Castella, Chief Third Party Capital Officer, SCOR; Marco della Giacoma, Portfolio Manager, Tenax Capital; and Michael Rich, Head ILS, Commodities & Environmental Strategies, K2 Advisors.
The panellists spoke about the evident diversification benefits that allocations to ILS have exhibited for investors over the last few years, saying that the lack of correlation remains a key driver for investor capital inflows to the sector.
They also explored how investor sentiment is evolving in the catastrophe bond space, as well as more broadly for investments into private ILS such as collateralized reinsurance arrangements.
Listen to the full podcast episode to learn more about the return potential of investment allocations to the insurance-linked securities (ILS) market. -
This was the third session of the day at our Artemis London 2023 insurance-linked securities (ILS) market conference, held on September 5th in London, UK.
Around 240 attendees enjoyed a busy day of thoughtful catastrophe bond and insurance-linked securities (ILS) focused discussion from industry experts, as well as valuable networking opportunities.
This session features a timely panel discussion focused on cyber catastrophe bond market developments, featuring some of those involved in some of the first wave of cyber cat bonds that launched soon after this event.
The panel discussion was moderated by: Kyle Freeman, Head of ILS Structuring, Property, AXIS ILS.
He was joined on stage by: Joe Gottlieb, Partner, Insurance Practice, Sidley Austin LLP; Rebecca Bole, Head of Industry Engagement, CyberCube; Richard Pennay, CEO of Insurance-Linked Securities, Aon Securities; and Benjamin Baltesar, Head of Underwriting and Pricing, Credit Suisse Insurance Linked Strategies.
The group explored the readiness of the market for cyber catastrophe bond, discussing the response of investors to the prospect of cyber cat bonds getting issued, and speaking to some of the challenges faced in getting investors comfortable with cyber risks in ILS form.
Event definitions were a focus, as this has been one of the key considerations for sponsors and their service providers, to ensure coverage is robust from a cyber cat bond.
The investor side was also discussed and the group agreed that, in cyber risk, event definitions are critical so that ILS investors understand what losses could qualify and they could be exposed to, if they invested in a cyber cat bond.
The group also said that the ILS market is ready for cyber and that investors have approached this in a pragmatic manner, with the initial cyber cat bonds ready to provide a good test for investor appetite and lay the groundwork for what could be an important new peril for the catastrophe bond market.
Listen to the full podcast episode to learn more about the nascent market for cyber catastrophe bonds. -
This was the second session of the day at our Artemis London 2023 insurance-linked securities (ILS) market conference, held on September 5th in London, UK.
Around 240 attendees enjoyed a busy day of thoughtful catastrophe bond and insurance-linked securities (ILS) focused discussion from industry experts, as well as valuable networking opportunities.
This session features an insightful panel discussion focused on developments in third-party investor sentiment for allocating to the insurance-linked securities (ILS) and catastrophe bonds asset class.
The panel discussion was moderated by: Lorenzo Volpi, Managing Partner / Deputy CEO, Leadenhall Capital Partners LLP.
He was joined on stage by: Chantal Berendsen, Hedge Fund IDD Senior Analyst, Insurance Specialist, Albourne Partners; Martin Dietz, Head of Diversified Strategies, LGIM; and Raffaele Dell'Amore, Head ILS Centre of Competence, Partner, SIGLO Capital Advisors AG.
The group explored the evolution of ILS investor sentiment over the last year and where it might be headed.
They identified ongoing challenges and the need for investor concerns to be addressed, but also a steadily improving environment for ILS investor sentiment, helped by the improvements in returns available from the market, as well as the evidence of ILS portfolio enhancements that are starting to show through.
Listen to this full podcast episode to learn more about the state of investor sentiment for allocating to the insurance-linked securities (ILS) market. -
This was the first session of the day at our Artemis London 2023 insurance-linked securities (ILS) market conference, held on September 5th in London, UK.
More than 240 attendees enjoyed a busy day of thoughtful catastrophe bond and insurance-linked securities (ILS) focused discussion from industry experts, as well as valuable networking opportunities.
This session features a keynote speech and Q&A with Burkhard Keese, the CFO of the Lloyd's insurance and reinsurance market.
Keese discussed Lloyd's progress with its activities of relevance to the ILS investor community.
In particular, he shared an update on the London Bridge 2 PCC ILS structure and said that he expects more activity through the platform over the coming months, as Lloyd's market participants look to access efficient sources of capital and reinsurance.
Listen to the full episode for more insights about the Lloyd's market and its interaction with the insurance-linked securities (ILS) community from Burkhard Keese. -
This panel discussion took place at the Artemis ILS Asia 2023 conference in Singapore on July 13th.
This was the final session of the day and saw three experienced insurance-linked securities (ILS) investment managers take to the stage, moderated by Steve Evans, Artemis' Owner and Editor.
The panellists taking part were: John DeCaro, Founding Principal, Elementum Advisors, LLC; Peter DiFiore, Managing Director, Neuberger Berman; and Stephan Ruoff, Head of ILS, Schroders Capital.
The panel session discussed the current state of the catastrophe bond and ILS market from the vantage point of experienced asset managers focused on this marketplace.
The group explored what the current attractions are for investors to look at the ILS asset class, particularly those in the Asia Pacific region.
In addition, a discussion was had as to how further institutionalisation of the ILS asset class could help it to deliver on its growth potential.
Pricing in catastrophe bonds was also discussed, with panellists opining on the softening of prices that has been seen through recent weeks.
Overall, investor appetite for ILS is viewed as increasing, but with the market still needing to prove out the improvements to the product and underwriting or structural changes that have been made, as well as to deliver the reinsurance-linked returns investors are expecting.
Listen to this full episode to learn more about the state of the cat bond and ILS market from the viewpoint of experienced ILS asset management experts. -
This panel discussion took place at the Artemis ILS Asia 2023 conference in Singapore on July 13th.
This session discussed the role of catastrophe bonds and trends in public sector and sovereign risk transfer, under the watch of moderator Alex Pui, Executive Manager, Commonwealth Bank of Australia.
The panellists taking part were: Scott McHardy, Head of Risk Finance, Toka Tū Ake EQC; Esther Kim, Senior Product Manager, Public Sector Solutions, Swiss Re; Michael Bennett, Head of Derivatives & Structured Finance, World Bank Treasury.
The panel session discussed the use of catastrophe bonds in public sector and sovereign risk transfer and the potential for that to increase, with specific relevance to the Asia Pacific region.
The group discussed specific use-cases for cat bonds in public and sovereign risk transfer.
They also explored the broader potential for use of insurance-linked securities (ILS) capacity within these risk transfer arrangements
With a catastrophe bond sponsor on the panel, as well as the World Bank, there was a robust discussion on the benefits of cat bond protection and of bringing the capital markets into catastrophe insurance and reinsurance programmes.
Listen to the full podcast episode to learn more about the use of catastrophe bonds within public sector and sovereign risk transfer programmes. -
This keynote speech took place at the Artemis ILS Asia 2023 conference in Singapore on July 13th.
This session featured Yusuke Kikuchi, Managing Director at Aon Securities (Japan), the catastrophe bond, insurance-linked securities (ILS) and capital markets division of the global insurance and reinsurance broker.
Kikuchi discussed the rapid economic growth potential of the Asia Pacific region, going on to highlight the magnitude of catastrophe losses that occur there and the resultant and still growing insurance protection gap.
He went on to run through a timeline of catastrophe bond issuance in the region, highlighting key transactions and sponsors, as well as the handful of reinsurance sidecar deals that have been completed in APAC.
Importantly, he noted the convergence of pricing between traditional reinsurance and ILS rates, which is helping to make the cat bond and ILS product range more appealing to sponsors.
Going on to explain that there is still outsized demand from ILS investors for access to APAC risks, which means any Asia Pacific focused cat bonds and ILS would likely be well-received, while also saying that demand for ILS investments from allocators in Asia Pacific also remains high and further flows to the asset class from the region should be expected.
Listen to the full podcast episode to learn more about catastrophe bond and ILS market activity in Asia Pacific and the opportunity to grow the cat bond market in the region. -
This panel discussion took place at the Artemis ILS Asia 2023 conference in Singapore on July 13th.
This session was moderated by Steve Tunstall, Director, PARIMA.org. The panellists taking part were: Kelvin Wu, Head of Insurance, Weybourne Holdings; Mansi Kalra, Managing Director, JBA Risk Management Pte Ltd; Franck Baron, Chief Risk Officer, International SOS; and George McGhie, Strategic Adviser - Asia Pacific, Artex Risk Solutions.
The panel session sought to explore the potential role of insurance-linked securities (ILS) in corporate risk management.
The group discussed how corporate risk managers and insurance buyers think of the ILS opportunity and whether they believe it is a viable and complementary source of risk capital to add to their insurance towers.
They also explored the broader potential for use of insurance-linked securities (ILS) in corporate risk management, as well as topics such as parametric risk transfer, which is becoming a key corporate risk transfer tool.
With two insurance buyers on the panel representing large users of risk transfer, the panel provided an insightful look into how corporates might increasingly look to ILS and what the ILS market can do to help them engage more with the capital markets as a source of insurance risk transfer.
Listen to this full podcast episode to learn more about corporate risk management in Asia and how large insurance buyers think of the insurance-linked securities (ILS) opportunity. -
This fireside chat interview took place on stage at the Artemis ILS Asia 2023 conference in Singapore on July 13th.
This session features a discussion with William Ho, the CEO of MS Amlin Asia Pacific, and Head of Reinsurance (Asia) for MS Amlin, about his expertise in the region, his firm's view of the reinsurance market there and also its use of insurance-linked securities (ILS).
MS Amlin has now sponsored three capital market arrangements that have been issued out of Singapore, all under the Phoenix Re name and all constituting quota share sidecar arrangements, backed by ILS investor capital.
Ho provided some insights into the importance of the Asia Pacific region to his employer MS Amlin, as well as his priorities for the business there as CEO.
He then went on to explain the motivation for sponsoring the Phoenix Re sidecar structures, the experience of doing so out of Singapore and the reception the deal's received from the ILS investor community.
Listen to the full podcast episode to learn more about the Asian reinsurance market place from the perspective of an ILS sponsor there, as well as William Ho's thoughts on the MS Amlin offering in Asia Pacific and his intentions for future use of the Singapore ILS regulatory regime. -
This panel discussion took place at the Artemis ILS Asia 2023 conference in Singapore on July 13th.
This session was moderated by Michael Dunsire, Regional Director, APAC, Aon Insurance Managers.
The panellists taking part were: Simon Goh, Partner, Head of Insurance & Reinsurance, Rajah & Tann; Matthew Song, Executive Director, Head of Corporate and Institutional Client, SGX Group; Tim Yip, Executive Director & Portfolio Manager, ILS Advisers / HSZ Group; Scott McHardy, Head of Risk Finance, Toka Tū Ake EQC.
Momentum surrounding Singapore's ILS market hub continues to build, and this panel featured a discussion about the future of ILS in the country and what is needed to sustain ILS as a component of Singapore's broader financial activities.
The group discussed the current status of the Singapore ILS regulatory offering, as well as recent changes to the Singapore ILS Grant Scheme.
They also explored the broader potential for use of insurance-linked securities (ILS) within Singapore and the Asia Pacific region.
In addition, a recent first-time catastrophe bond sponsor on the panel, in Scott McHardy, Head of Risk Finance, Toka Tū Ake EQC, discussed the experience of using Singapore as a cat bond issuance domicile and explained how the regulator and service providers had supported the EQC through that process.
Listen to the full podcast episode to learn more about the insurance-linked securities (ILS) market in Singapore, the Singapore ILS regulatory regime and the continued investment that the country is making in developing a sustainable ILS hub component within its capital market. -
This keynote speech took place at the Artemis ILS Asia 2023 conference in Singapore on July 13th.
This session featured Stefan Kräuchi and Tim Yip of Hong Kong based ILS investment manager and advisory firm ILS Advisers, which is part of the HSZ Group, discussing the Asian ILS investor landscape from their vantage point of being the only asset manager with a focus on the asset class that is located in the region.
The pair discussed some of the characteristics of ILS investors in the Asia region, as well as the ILS opportunities to invest in insurance risk originated from that part of the world.
They also explored the insurance and reinsurance landscape and why, despite having some of the largest reinsurers based there, Asian companies are so far not as advanced in managing ILS capacity themselves.
In addition, the ILS Advisers duo explored reasons for ILS having a slower uptake in Asia and what holds back more Asian insurance risk making it into the ILS market.
Listen to the full podcast episode to learn more about the Asian insurance-linked securities (ILS) market, its investor base and the market conditions in this location. -
Christian Mumenthaler, the CEO of global reinsurance giant Swiss Re joined us for an interview and explained that he believes that the hard market in reinsurance will be sustained, at least for a few years.
During this Artemis Live interview, Mumenthaler discusses reinsurance market efficiencies, the insurance protection gap, secondary peril effects, the capital markets and insurance-linked securities (ILS), as well as the current state of the reinsurance market and the outlook for the end of year reinsurance renewals.
On the outlook for year-end and beyond, Mumenthaler said, "We shouldn't forget that the industry has gone through a pretty bad period with a lot of losses, not just natural catastrophes, also COVID and other things.
"Reinsurers, in particular, have been a shock absorber for a lot of the negative things of the last few years and, in the end, we're all one value chain and it is necessary that every piece gets the capital from shareholders, and there's a dire need for reinsurance to have a higher return, to go back, to have an average over time that is sufficient.
"So I see a huge need for reinsurers to become more profitable at this stage and so I think this will also sustain prices as we go through.
"Now, if you have big losses, I could absolutely imagine prices to go further up. If there's absolutely nothing happening, we will see.
"So there's this time correlation that's that's going to be playing a role, but overall from an environment, if we have a normal load of nat cat, I absolutely see the hard market to sustain for a few more years."
Listen to this full podcast episode for more insights from Christian Mumenthaler, CEO of Swiss Re. -
This fireside chat interview took place at the Artemis ILS Asia 2023 conference in Singapore on July 13th.
This session featured a discussion with Lorenzo Volpi, Deputy CEO and Managing Partner of specialist insurance-linked securities (ILS) investment manager Leadenhall Capital Partners, focusing on his firms operations as a diversified ILS investment manager.
Volpi discussed the benefits of having a diversified range of strategies available for investors, with funds focused on both the P&C and life sides of insurance and reinsurance opportunities.
Volpi went on to explore some of the priorities Leadenhall Capital Partners has at the moment, as well as his thoughts on the ILS market within Asia specifically.
He then spoke about the current ILS and reinsurance market dynamic, highlighting the attractive investment opportunity it currently presents.
Listen to the full podcast episode to learn more about the operations of a diversified ILS investment manager, as well as Lorenzo Volpi's thoughts on Leadenhall Capital Partner's priorities and market conditions today. -
This opening keynote speech was delivered at the Artemis ILS Asia 2023 conference in Singapore on July 13th.
During his speech, Cheng Khai Lim, Executive Director, Financial Markets Development Department at the Monetary Authority of Singapore (MAS), highlighted the importance of building out greater structuring and deal capabilities in the Asia region, as Singapore continues to streamline its insurance-linked securities (ILS) regulatory regime.
He discussed growth prospects for insurance-linked securities (ILS) markets globally and in the Asia region.
In particularly, he pointed to the need for significant reinsurance protection from traditional and also non-traditional sources, such as the capital markets, to better protect against rising losses from natural catastrophes in the region.
Lim said that the Monetary Authority of Singapore (MAS) is committed to supporting the establishment of ILS structuring capabilities and growing ILS issuance in Singapore.
The Monetary Authority of Singapore (MAS) will also continue to support catastrophe bond and insurance-linked securities issuance in the Asia and Pacific region through the extension of its ILS grant scheme by a further three years, to run until the end of 2025.
Listen to this full podcast episode to learn more about the activities of the Monetary Authority of Singapore (MAS) in fostering insurance-linked securities (ILS) activity in Asia and Singapore. -
The insurance-linked securities (ILS) fund manager community continues to deal with trapped collateral from previous catastrophe years, but the opportunity cost has grown, we learned in our latest Artemis Live video interview.
Our latest Artemis Live video interview is with Megan Green, a Partner in the PwC Bermuda Asset Management Assurance Group.
Green's work is focused on providing assurance services to clients in the asset management industry including insurance linked securities providers and she joined us to discuss insurance-linked securities (ILS) asset management activity in Bermuda today.
Green highlighted trapped collateral as a continuing issue for ILS fund managers and one that now comes with an increasing opportunity cost.
She explained that alongside investor appetite and capital raising, trapped collateral remains the other hot-topic for ILS managers.
"That's been an issue for a few years now, but we are seeing collateral get released, which is great," Green said.
But continued, "I think in this market, with rates being as strong as they are, it almost shows that the opportunity cost of that trapped collateral is greater. "So it's probably getting an even greater focus, because obviously investors and ILS managers would love that to be deployed."
While trapped, this collateral and capital cannot be recycled to be put to work in fresh reinsurance arrangements, which in the hard market environment would come with significantly higher-yields than the arrangements that now see collateral still trapped.
Green went on to say that, "It'll be interesting to see what happens in that space. You know, you obviously have your commutations that are going on. But, there's chatter about whether standard commutation clauses are put in contracts, if that solves the problem. So I'll be interested to see what happens."
Listen to the full podcast episode for more insights from PwC Bermuda's Megan Green. - Visa fler
