Experience And Expertise: A Key Ingredient For ILS Domiciles

Fiona Le Poidevin of Guernsey Finance examines the attractiveness of the Insurance Linked Securities asset class and what role domiciles can play.

Investors and managers continue to be drawn to the non-correlated nature of insurance linked securities (ILS) investments.

It's not only because ILS products are non-correlated with the general financial markets that they are liked, but the fact that they are also providing good returns at a time when a low interest rate environment remains. Although specialist catastrophe funds remain the largest investor in ILS, mutual funds including pension funds and institutional investors have increased their participation in the asset class significantly.