Banking Risk and Insurance Risk Are Quite Opposite

We recently hosted a webcast in partnership with Vesttoo, where the discussion focused on innovative approaches to insurance and reinsurance linked investments. 

Our expert panellists discussed opportunities for investors to access high frequency, low severity insurance asset classes. 

Viewers heard how the market for insurance and reinsurance linked investments continues to develop, with new routes becoming available to help investors access what is an expanding asset class. 

Also discussed, were thoughts around how innovative approaches, such as pooling or asset-based collateralization, can enable asset managers to buy into these risks, earning spread from the uncorrelated risk of non-catastrophe insurance and reinsurance premiums on top of current yields. 

Our panel guests included: Yaniv Bertele, Chief Executive Officer (CEO) of Vesttoo; Mattias Eng, Head of Insurance Solutions, Securis Investment Partners LLP; Hedwige Nuyens, Managing Director, International Banking Federation; and Sam Gaynor, Co-Head Financial Services Practice, Altamont Capital Partners. 

Our industry experts agreed that the low volatility and projectable cash flows offered by high frequency, low severity perils in areas such as casualty insurance or reinsurance, are increasingly gaining attention from more experienced investors looking for relatively uncorrelated returns and higher yields.