Insurance Linked Securities: developing climate resilience

Towards Net Zero: COP26 and Beyond

Insurance Linked Securities (ILS) are an alternative asset class where investors’ returns are primarily linked to the occurrence of natural catastrophes. Since the majority of exposures emanate from climate-related risks, the potential impact of climate change is a key consideration for ILS managers and investors. In parallel, ILS is receiving increased recognition for its inherent ESG-positive characteristics with the critical role insurance plays in helping society develop long-term resilience.