72: The importance of investor communication in insurance-linked securities (ILS)

During our recent ILS Asia event we interviewed two experts from Securis Investment Partners about the importance of investor communications, especially in relation to Asian perils & climate risk. Yuko Hoshino, Co-head of Global Investor Relations and Paul Wilson, Head of Non-Life Analytics, both from Securis Investment Partners LLP, gave an overview of the Asian ILS investor base and explored the experience of investors in the region after some challenging loss years. The impact of Japanese typhoon Jebi was a focus of the session and Hoshino explained that when the storm arrived in September of 2018, even local people did not expect that it would become the largest loss event in Japanese insurance history. For Securis, Hoshino explained that Jebi was more impactful for aggregate deals since the loss creep followed other 2018 events, including Hurricane Michael and wildfires. According to Hoshino, in the aftermath of Jebi, investors specifically asked questions around issues such as modelling for Japan typhoons, flood risk, the setting of side pockets and how losses would be reserved for. Wilson went on to explain that when he speaks with investors, he always looks to separate the two aspects of the use of the catastrophe models. The pair also explained how they approach investor discussions about key issues such as climate change, both from the investment and science sides of the equation.

There are no comments yet.

Please log in to write the first comment.