Global warming and Insurance Linked Securities

Climate change has become a significant factor for the insurance industry. This assessment is hardly surprising news, as the first considerations about the interplay between climate change and the insurance business were initiated in the 1970s by companies such as Munich Re and Swiss Re. Nowadays, climate change poses a risk for the industry that needs to be managed, but also offers new business opportunities and growth potential for both traditional reinsurance and the ILS industry.

In this market commentary, we examine some questions on this topic from the perspective of the ILS market. Please don’t hesitate to contact us if you wish to discuss the subject further.