An acceleration of significant weather events are impacting the risk premium earned from insurance-linked securities, providing a significant inflation hedge for institutional investors, says Bernard Van der Stichele, senior portfolio manager of insurance-linked securities at the Healthcare of Ontario Pension Plan. “ILS investments earn a risk premium that is directly proportional to the level of risk […]
As institutional investors seek portfolio diversification and the insurance industry seeks additional capacity amid global growth, investment strategies incorporating insurance-linked securities are providing a solution for both parties. Insurance-linked securities allow insurers to transfer some of their risk to investors. For example, in the case of catastrophe bonds, the issuer pays a coupon to an […]
In a market rocked by a considerable increase in cross-asset volatility, the need to search for alternative means of diversification that embrace different sources of risk and return is crucial. One solution for pension plan sponsors to consider is investing in insurance-linked securities. Often a misunderstood and underutilized asset class, insurance-linked securities are investments whose […]