We’re looking into the far reaches of the search for yield in this episode, diving into investors’ interest in so-called Cat Bonds, or catastrophe bonds, and the world of reinsurance and ILS (insurance-linked securities). Yes, even the biggest risk-takers need backing – and we’re talking Reinsurance with Chris McKeown, Chief Executive of Reinsurance, ILS, and Innovation at Vantage Group Holdings. Take a trip with us and daydream about Bermuda as we define reinsurance: the secondary market & their clientele, capital protection, the risk transfer process and what efforts go into sorting through claims, what disaster gaps are, and how reinsurance is helping aid areas in vital need of protection. We’re discussing Cat(Catastrophe) bonds, ILS, Pop & Drop Hurricanes, Climatology, tight ecosystems, secret handshakes, and why Bermuda is the central hub for reinsurance. Chris explains the importance of adjusting models to deploying capital, why cat bond investors rely on these models, and what structural issues the business of reinsurance is facing in an upside market, trying to bring investors in.
Chapters:
00:00-02:39 = Intro
02:40-10:43 = Taking on Risk in the Hurricane Belt
10:44-32:41 = Off-loading Riskvia Reinsurance, Capital Deployment & Investor portfolio protection
32:42-38:21 = Cat Bonds & Structural Issues in an Upside Down Market
38:22-52:35 = Climate Change, Adjusting Models & Defining Capital in a Tight Ecosystem
52:36-58:05 = Favorites
For more information about Vantage Group Holdings please visit vantagerisk.com
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