Artemis Live - Insurance-linked securities (ILS), catastrophe bonds (cat bonds), reinsurance
12: Michael Millette, Hudson Structured, May 2020 - on ILS & reinsurance investing beyond Covid-19
Jun 9, 2020
28:51
Michael Millette, Founder & Managing Partner at Hudson Structured Capital Management, a specialist alternative asset manager with a focus on sourcing insurance and reinsurance linked returns for its investors, joined us for our latest video interview.
Millette discussed insurance-linked securities (ILS) and reinsurance investing, giving his view on prospects for the ILS asset class beyond the Covid-19 pandemic and what that may bring for investors.
"Tragedy and history. This is as near to what any of us have seen in our lifetimes, an event affecting everybody all around the world, so it's tragic and likewise it's historic," Millette said.
On the Lloyd's of London estimate for a $107 billion non-life industry loss, he commented, "I expect that's in the right neighbourhood. We have been talking and thinking about losses on that scale.
"It's interesting though, this is not just a gigantic catastrophe loss, although it is a gigantic global catastrophe. This is a massive horizontal loss for the industry."
He went on to explain what this could all mean for the ILS fund and reinsurance linked investment market.
Describing some of the immediate opportunities that could arise in specific lines of business, as well as in investing in insurtech start-ups, saying "this a digital forcing event around the world" and calling it "the insurtech moment."
Millette discussed insurance-linked securities (ILS) and reinsurance investing, giving his view on prospects for the ILS asset class beyond the Covid-19 pandemic and what that may bring for investors.
"Tragedy and history. This is as near to what any of us have seen in our lifetimes, an event affecting everybody all around the world, so it's tragic and likewise it's historic," Millette said.
On the Lloyd's of London estimate for a $107 billion non-life industry loss, he commented, "I expect that's in the right neighbourhood. We have been talking and thinking about losses on that scale.
"It's interesting though, this is not just a gigantic catastrophe loss, although it is a gigantic global catastrophe. This is a massive horizontal loss for the industry."
He went on to explain what this could all mean for the ILS fund and reinsurance linked investment market.
Describing some of the immediate opportunities that could arise in specific lines of business, as well as in investing in insurtech start-ups, saying "this a digital forcing event around the world" and calling it "the insurtech moment."
