ESG

Environmental, social and governance concerns are of growing importance to the ILS industry, but work remains to be done on building a consensus about concrete goals.

The firm signed up to the UN Principles for Responsible Investment a year ago.

The models will be available in June initially for North Atlantic hurricane, Europe inland flood and Europe windstorm.

Declining listed issuance volumes could be down to a growing desire for transparency and flexibility after recent loss years.

A survey from the Bermuda Monetary Authority found almost 60% of P&C insurers have not changed their business strategy in response to climate change.

Underwriting results and ESG principles should be aligned and more information will be sought from counterparties, the ILS manager said.

A more detailed ILS framework is to come.

The total increase to the Bermudian firm’s AuM will be “tempered” at the start of the year due to timing of allocations, cat losses and side pocketing.

The firm aims to use AI to fill the protection gap left by “black swan” events like Covid-19.

The sector has received a post-Covid boost heading into January, with strong interest in liquid cat bonds, but challenges around structures, pandemic exposures and lifting ESG commitments will remain.

The move comes as environmental policies move up the list of investor priorities.

The carrier will largely avoid ILS and focus on differentiating through ESG.