According to James Squires, Head of Multi Asset and Partner at Baillie Gifford, the risk-based premium structure of insurance-linked securities encourages important mitigation and resilience measures by communities, governments, and insurance providers.
In a report focusing on the resurgence of the ILS market in recent years, Squires highlighted how this financial instrument can mitigate the negative consequences of natural catastrophes by contributing to rebuilding societies and improving their long-term resilience.
Independent investment manager Baillie Gifford has been investing in catastrophe bonds and ILS for a number of years, using them within certain of its multi-asset and diversified investment fund offerings.
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