Sustainable Views’ Post

Are Cat Bonds Truly Sustainable? Initially, I assumed it was universally accepted at this point that cat bonds are among the most sustainable and ESG-positive asset classes. However, during a recent discussion with FT’s Sustainable Views, I discovered that not everyone shares this view. In my conversation with Claudia A. R. De Meulemeester from SustainableViews, I highlighted why cat bonds—vital for post-disaster recovery—should be recognized as sustainable. The argument brought by others (as highlighted in the article) that “cat bonds don’t prevent disasters” overlooks their true value. Just as seat belts don’t prevent accidents but significantly reduce their impact, cat bonds play a crucial role in mitigating the financial consequences of catastrophic events, ultimately supporting communities and families in their recovery. For those interested in exploring the intersection of ESG and cat bonds further, we at Icosa Investments AG have recently released a special Icosa Insights report on this very topic. Feel free to reach out for a copy.

Check out our latest blog on some of the more far-reaching impacts of climate change on the commercial real estate sector - the insurance industry. (Authored by Courtne (Beth) Yetter) https://lnkd.in/ebbDmgEx

Developments in recent years have made it apparent climate change is a serious concern for the insurance sector and insurance-linked strategies. Investors in ILS benefited from attractive returns in 2023, despite it being one of the costliest years for insurers, mainly attributable to a series of storms, wildfires and floods. LGT Capital Partners' paper explores the potential effects of climate change on the insurance industry’s perils and regions, and how to invest in the asset class against this backdrop. #ClimateChange #EnvironmentalImpact #PensionsforPurpose https://ow.ly/O9HO50SFPKR

In a recent WTW report, 71% of beverage industry businesses identified climate change as the top environmental threat, emphasising the need for adequate declared values to limit the impact of climate-related events like floods and droughts. https://lnkd.in/ek6KsNPc #beverages #valuation #assetadvice #asset #insurance #insurancevaluation #underinsurance #assetsurveys

Climate catastrophes are becoming more frequent and costly. Dive into how insurers can bolster resilience and adapt to the changing landscape. https://bit.ly/3xzelNh ⬇️ #insurancenews #insurance2024 #insurtech #insuranceindustry #insurance #lenderdock #climatechange

This is an insightful take on the role that climate change is having on insurance increases from industry experts in this piece by Axios' Andrew Freedman: https://lnkd.in/drNR7C8y I agree with the sentiment that #climatechange is just one piece of a complex puzzle regarding increasing #insurance costs across all sectors of society. However, its also important to think about the compounding effect of additional assets in need of insurance, via the process of economic development and urbanization, as not being isolated from the increased exposure to climate risk. We have more assets in risky areas, that are becoming more prone to climate disasters. Ultimately, its the combination of those two things that is important.

🗞 “Climate change is a trend leading to more extreme events and an increase in the range of events we are observing, which is particularly evident for perils like #flood and #wildfire." ”There is no doubt that climate change increases volatility, frequency, and also severity. However, what we observed in recent years is not due to climate change only.” "The observed increase in frequency and severity of nat cat events is also compounded by issues such as change in land use and land cover, urbanization, and concentration of risk in areas such as floodplains." Maurizio Savina talks to Insurance Times for an article written by Tim Evershed looking at the impact climate change is having on the insurance industry, how firms are building resilience in their operations, and the strategies that insurers are deploying to help their clients. Read the Insurance Times article here: https://lnkd.in/evcWNdAd #riskmanagement #climatechange #insurance #insurancenews

Developments in recent years have made it increasingly apparent that climate change is now a serious concern for the insurance sector as well as for investors in insurance-linked strategies (ILS). While the asset class generated strong returns in 2023, primary insurance companies faced one of the costliest years in recent history due to multiple series of mid-sized loss events such as severe convective storms, wildfires and floods. LGT Capital Partners’ new whitepaper explores the potential effects of climate change on the insurance industry’s key natural perils and explains how best to invest in the ILS asset class against this backdrop. Read more here: https://lnkd.in/df62HNAK #lgtcapitalpartners #lgtcp #insurancelinkedstrategies #ils #climatechange

📣 Investing in insurance-linked strategies in a changing #climate Global warming is a concern for the #insurance industry, as well as for #ILS investors. Check out our white paper to find out how ILS managers can weather the storm and turn the challenge into an opportunity!

If you talk to a friend that owns a similar business to yours, please don't assume that the insurance program should be similar to yours. There are many factors that can change the actual pricing of the coverage. Some of those items would be: The state your HQ is. The number and type of incidents that you historically get. Your level of comfort to taking risk. Is your company owned by a larger entity. And a million other differences. With climate-related events on the rise, insurers should understand and address the limitations and uncertainties of climate scenario modeling https://ow.ly/phUF50RlEHz #ClimateRisk #ClimateModeling #ClimateResilience #WTWPerspective