Rethinking ILS Collateral

Increasing interest from dedicated ESG investors is encouraging some deal structurers to think of new and creative ways to make ILS even more appealing, Peter Dunlop of Walkers tells Bermuda:Re+ILS.

Insurance-linked securities (ILS) are attracting a significant amount of new demand from environmental, social and corporate governance (ESG) investors, according to Peter Dunlop, partner at Walkers in Bermuda, leading to increasingly creative deal structures that maximise the social benefits of the structures.

"Many existing ILS investors already think of it as an ESG product and demand great things from ILS capital managers to meet ESG-motivated goals," Dunlop notes. One result of this is a number of structurers looking to maximise the appeal of ILS by getting creative around the use of collateral.