New whitepaper on insurance-linked strategies and climate change published

13 May 2024

LGT Capital Partners’ new whitepaper on investing in insurance-linked strategies (ILS) in a changing climate explores the potential effects of climate change on the insurance industry’s key perils and regions.

Investors in ILS benefited from very attractive return momentum in 2023. The key driver of these strong returns was the much higher premium environment, coupled with a revised portfolio allocation strategy that mitigated loss impacts to a significant extent. For primary insurance companies, however, 2023 was one of the costliest years in recent history.

These primary insurance losses were mainly attributable to a series of mid-sized events, such as severe convective storms, wildfires and floods, rather than extreme catastrophe events such as a massive earthquake or hurricane.

Developments in recent years have made it increasingly apparent that climate change is now a serious concern for the insurance sector as well as for investors in ILS. The whitepaper explains how best to invest in the asset class against this backdrop.


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