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Podcast Episode 19: Understanding Insurance-Linked Securities: Navigating Risk, Return and Resilience
In this episode, SBAI’s Brian Digney is joined by Chantal Berendsen, Partner and Senior Hedge Fund IDD Analyst at Albourne Partners, and Richard Lowther Managing Partner and Co-Founder of Integral ILS, to explore the fascinating world of insurance-linked securities (ILS).
Chantal and Richard explain how ILS offers diversification benefits due to its low correlation with traditional capital markets, while also exploring the complexities, opacity, and relationship-driven nature of this niche asset class. They discuss the structure of the insurance and reinsurance ecosystem, the different segments of the ILS market, from catastrophe bonds to quota shares and retrocession, and the evolution of market transparency since major events like the 2017 hurricane season.
Listeners will gain practical insights into:
- How institutional investors can access and benefit from ILS strategies
- The mechanics of catastrophe bonds and other ILS products
- Key challenges such as trapped capital, loss creep, and valuation transparency
- The growing importance of climate risk, modelling accuracy, and emerging perils like cyber risk
- What investors and consultants look for in ILS managers, from governance and operational strength to transparency and due diligence.
Ultimately, the discussion highlights how trust, transparency, and long-term perspective are essential to success in the insurance-linked investment space. Whether you’re an allocator exploring uncorrelated strategies or an asset manager seeking to understand this unique corner of the alternatives universe, this episode offers a clear, grounded introduction to ILS and how it fits within a modern investment portfolio.
About the SBAI:
We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership, and knowledge. We do this by setting Standards, providing industry guidance, and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$ 11 trillion in assets.
For more information, visit https://www.sbai.org/
For more information visit https://www.sbai.org/
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By SBAIIn this episode, SBAI’s Brian Digney is joined by Chantal Berendsen, Partner and Senior Hedge Fund IDD Analyst at Albourne Partners, and Richard Lowther Managing Partner and Co-Founder of Integral ILS, to explore the fascinating world of insurance-linked securities (ILS).
Chantal and Richard explain how ILS offers diversification benefits due to its low correlation with traditional capital markets, while also exploring the complexities, opacity, and relationship-driven nature of this niche asset class. They discuss the structure of the insurance and reinsurance ecosystem, the different segments of the ILS market, from catastrophe bonds to quota shares and retrocession, and the evolution of market transparency since major events like the 2017 hurricane season.
Listeners will gain practical insights into:
- How institutional investors can access and benefit from ILS strategies
- The mechanics of catastrophe bonds and other ILS products
- Key challenges such as trapped capital, loss creep, and valuation transparency
- The growing importance of climate risk, modelling accuracy, and emerging perils like cyber risk
- What investors and consultants look for in ILS managers, from governance and operational strength to transparency and due diligence.
Ultimately, the discussion highlights how trust, transparency, and long-term perspective are essential to success in the insurance-linked investment space. Whether you’re an allocator exploring uncorrelated strategies or an asset manager seeking to understand this unique corner of the alternatives universe, this episode offers a clear, grounded introduction to ILS and how it fits within a modern investment portfolio.
About the SBAI:
We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership, and knowledge. We do this by setting Standards, providing industry guidance, and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$ 11 trillion in assets.
For more information, visit https://www.sbai.org/
For more information visit https://www.sbai.org/