Climate change is not expected to impact all forms of investment in insurance-linked securities (ILS) uniformly, according to Twelve Capital, which means for ILS investors and managers, analysing climate exposure, as well as establishing and updating a house view on risk is key.
In an update on hurricane activity yesterday, Twelve Capital explained that, “Analysing and assessing the impact of climate change on natural catastrophes is key for benchmarking risk-adjusted pricing of Insurance-Linked Securities.”
