ESG

Technology-enabled platforms could create a cost-effective, dynamic following market, panellists said.

Cat losses have highlighted the importance of modelling for secondary perils, but there is room for optimism in the industry, panellists said at Trading Risk’s London ILS event.

Daniel King-Robinson and Tobias Engeli have joined Twelve Capital from EFG Bank to work on sustainable and climate investing, which the firm said strengthened its ESG focus across portfolios for institutional clients.

Recently one of my colleagues argued that it was time for a “bonfire of PMLs”, as the past five years have shown that the industry has seriously underpriced the kind of $10bn-$20bn loss events that have been happening since Harvey, Irma and Maria landed in 2017.

Lloyd’s chief of markets Patrick Tiernan ruled out completely cutting out sources of energy relied on by certain communities.

The ratings agency said cat activity, Covid-19 and social inflation would play key roles in influencing investor returns.

Schroders Capital ILS chairman Dirk Lohmann said the shift could be due to yield compression in the bond market.

From ESG to social inflation, systemic risk to cat risk, we highlight some of the top discussions from this year’s four-day virtual conference.

Carriers will not necessarily accept smaller returns in exchange for high ESG scoring vehicles and risks must be properly priced, according to Dirk Lohmann, chairman of Schroders Capital ILS.

The broker expects ongoing single-digit growth within the ILS market.

The Willis solution is designed to help companies access insurance as they transition to a low-carbon business model.

Increasing workforce diversity may be an easier goal than closing the widening protection gap.