Insurance Linked Securities (ILS) as an asset class have evolved from an exotic alternative asset to an accepted component of many investor’s strategic asset allocation mix. Over the past few years, the lack of significant insured catastrophe events has resulted in downward pressure on catastrophe pricing in the traditional reinsurance market and associated yield compression in the alternative capital markets for reinsurance. How much of this is due to the “cycle” in reinsurance pricing and how much is a consequence of yield compression amongst all assets due to the effects of central bank quantitative easing? Is the investment case for ILS still valid? Dirk Lohmann will investigate the developments and explore these questions.
Another issue occupying many investors is the prospect for further growth in the sector. Is ILS becoming another crowded niche? Are there opportunities beyond catastrophe and what new products are on the horizon? Scott Mitchell will discuss the subject of life ILS and whether this segment should be viewed as part of a broader diversified insurance strategy or also as a stand-alone asset class.
Des Potter, Managing Director of GC Securities, a division of Guy Carpenter, one of the leading global reinsurance intermediaries, will provide his view on recent trends within the ILS sector and provide his insight on the development of new markets and coverage concepts where insurance securitization techniques can be applied.
Our symposium will conclude with a panel discussion moderated by Richard Bruyère, CEO of Indefi Group, looking at ILS from the investor’s perspective.