As the buildout of AI and digital infrastructure continues to expand across the re/insurance industry, driving insurance-linked securities (ILS) into this emerging sector relies heavily on key structural advancements, including the development of standardised parametric triggers and portfolio aggregation mechanisms, according to Michael Moloney of Oliver Wyman.
Moloney who serves as Partner, Global Head of Insurance and Asset Management and Managing Partner, Actuarial, at Oliver Wyman, a management consulting firm and part of broker Marsh, recently highlighted in Guy Carpenter’s latest report how the ILS industry can branch into the digital infrastructure space.
“The buildout of AI and digital infrastructure represents one of the largest coordinated capital formation exercises in modern economic history. JP Morgan estimates US$5 trillion in global capital will be required between 2025 and 2030 to fund data center and AI infrastructure growth, with broader market forecasts extending to US$7 trillion across the same horizon,” Moloney said.
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