In this episode of the InsuranceAUM.com podcast, host Stewart Foley, CFA, welcomes Steve Evans, owner and Editor-in-Chief of Artemis and Reinsurance News. Steve provides a deep dive into the world of insurance-linked securities (ILS), an area Stewart is eager to learn about. Steve shares his journey from his early career in Ireland and England to founding Artemis, a leading publication in the ILS space. Together, they explore the evolution of ILS, its role in diversifying risk, and how it offers unique opportunities for investors in catastrophe bonds and other securitized insurance risks.
Steve explains how ILS instruments, particularly catastrophe bonds, provide investors with uncorrelated returns and act as a vital risk transfer tool for insurers, reinsurers, and even governments. He discusses key trends, including the growing impact of climate risk and inflation on the market, and how ILS is becoming a mainstream investment class for large institutional investors. This episode offers valuable insights for insurance investment professionals looking to understand the ILS market and its prospects for growth in today’s challenging global environment.