ILS disruption has robust insurance impacts: Truist video interview

The insurance-linked securities (ILS) market and its capital base continues to be a disruptive force across insurance and reinsurance, with robust impacts and also benefits to the wider industry, according to executives from Truist Securities.

In the next in our series of sponsor showcase video interviews for the upcoming Artemis ILS NYC 2022 conference (held April 22nd in New York City), we welcomed speakers from one of our Associate sponsors for the conference, global banking and broking company Truist.

Joining us for this conversation were Matt Gelber, Head of Insurance Investment Banking, and Andy DeVries, Managing Director of Insurance Investment Banking, both from Truist Securities.

The pair discussed insurance industry capital trends, with a specific focus on how the insurance-linked securities (ILS) market has proven to be both disruptive and a source of efficient capital for ceding companies.

Gelber told us, “There’s no question there’s been a significant amount of capital moving towards the insurance sector in recent years. We’ve also seen an increasingly sophisticated and granular approach to risk selection.

“As part of that, we’ve definitely seen growth and scale in the ILS markets and other capital market solutions that support that kind of business innovation.

“That incremental capital and capacity has had a strong and robust impact on all facets of the insurance industry deal landscape, across M&A and other capital markets opportunities. It’s been a very exciting time for the industry and frankly we see it continuing for a while.”

DeVries further commented, “ILS remains very disruptive to traditional risk transfer pricing, said differently traditional reinsurance pricing. It’s obviously not a product that’s going away for a few reasons, probably chief among them there’s a real diversification benefit to a non-correlated asset to an ILS instrument.

“Sophisticated investors are always going to have that need as part of a broader portfolio.”

Also explaining that, “In a low-rate environment there’s probably going to be a little more search for yield that could drive generalists to the product, more than they would otherwise.”

Hear more on some of these key ILS market trends during sessions at the upcoming Artemis ILS NYC 2022 conference in New York on April 22nd (get your ticket today).

For details and to register for the conference, visit the event website: www.artemis.bm/ils-nyc-2022/.

The full video interview is embedded below and can also be viewed in full, along with previous Artemis Live video interviews here.

You can also listen in audio to our interviews by subscribing to the Artemis Live podcast here.

View all of our kind sponsors of the ILS NYC 2022 conference below:

For all enquiries regarding sponsorship opportunities please contact [email protected]

Truist Securities is a service mark of Truist Financial Corporation. All rights reserved. Truist Securities is the trade name for the corporate and investment banking services of Truist Financial Corporation and its subsidiaries. Securities and strategic advisory services are provided by Truist Securities, Inc., member FINRA and SIPC. Lending, financial risk management, and treasury management and payment services are offered by Truist Bank. Deposit products are offered by Truist Bank, Member FDIC.