A selective approach and a deep understanding of climate-related risks are key to managing insurance-linked securities (ILS) investments, according to François Divet, Head of ILS at AXA Investment Managers.
Divet recently highlighted both positive supply and demand factors for ILS, while also explaining that due to climate change and its potential effect on catastrophe loss events, selectivity is key.
Insurers are reportedly seeking coverage for increasingly costly climate-related events, while more investors are recognising the attractive diversification benefits of the ILS asset class.
FULL ORIGINAL PUBLICATION HERE
