47: The future of ESG in insurance-linked securities ILS - Marcus Rivaldi, Twelve Capital - ILS NYC 2021

Marcus Rivaldi, Managing Director, Analytics at specialist ILS and reinsurance investment manager Twelve Capital, joined us to explore environmental, social and governance (ESG) practices in the insurance-linked securities (ILS) market, as part of our ILS NYC 2021 virtual conference.  We spoke about ESG (environmental, social, governance) and what the insurance-linked securities (ILS) sector needs to consider moving forwards.  Discussing some of the important issues that need to be addressed to ensure the ILS asset class can meet the demands of investors for ESG compatible returns.  Marcus also explained that the already large environmental, social and governance (ESG) investor community is poised to expand further, but in order for the insurance-linked securities (ILS) sector to really take advantage of the opportunity it needs to address certain challenges. Rivaldi highlighted inconsistency across the insurance and reinsurance balance sheet, with carriers being more eager to disclose information on the asset side of the balance sheet, but not so willing on the liability side. Furthermore, geographical inconsistency is also a hindrance, he added. Of course, it’s also going to be critical for the market to really demonstrate the understanding and management of environmental-type risks, which raises the climate factor and the capabilities of modelling for certain exposures.

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