The ILS market in Guernsey sees the proliferation of
ESG risks as the gateway to the convergence between captives and
alternative capital, explains Walkers Partner Kate Storey in
an article for Insurance Day.
With the growing focus on environmental, social and governance
(ESG) principles and sustainable investing, development of
innovative insurance-linked securities (ILS) products to cover new
risks and the massive growth in new captives to deal with the
hardening insurance market, it feels as though it will be a short
matter of time before captives' involvement with ILS is more
commonplace.
Insurance managers in Guernsey have reported an increased
interest from ILS investors in tapping into the expanded captive
insurance market to offer an alternative source of reinsurance to
captives. And as the ILS market evolves to cover new ESG-focused
risks, corporations and their captives will become more comfortable
using ILS, as will government investors, which will
