A recent article citing various ILS industry leaders discusses how asset managers in the ILS space need to change the ESG narrative to represent this niche asset class in the most accurate and appropriate way possible.

Current ESG frameworks are more geared to assessing the suitability of an Equities portfolio or a Fixed Income Corporate Credit strategy, i.e. assessing company governance. However, ILS is naturally linked to ESG by its very core principles of assessing environmental risk and pricing climate related catastrophes. The existing frameworks to assess ESG suitability do not take into account factors such as the naturally sustainable and socially responsible nature of insurance.

ILS managers need to consider ways to tell their own story to accurately represent the asset class within the ESG conversation.