ILS has an upper-edge, strong narrative when it comes to proving diversification: Convergence

For investors in the insurance-linked securities asset class, when pitching a potential allocation to their investment committees the task is helped by the fact ILS has a strong narrative to tell, when it comes to proving its diversification benefits and has the data to support that, speakers at the Convergence 2026 conference in Bermuda said today.

During a panel discussion at the event featuring end-investor allocators and an investment firm that provides specialist advisory and portfolio construction services, the speakers explained that while it’s not always the easiest asset class to present to an investment committee, the fact ILS has the data to evidence the diversification story is helpful.

Joe Tolen, Senior Investment Director at specialist advisor Cambridge Associates, said that explaining the true diversification benefits of some private and alternative asset classes can be a challenge, but when it comes to insurance-linked securities there is an easier story to tell.

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