Being viewed as ESG positive is not enough for ILS: Hiscox
Interest in the relevance of insurance-linked securities (ILS) from an ESG standpoint continues to grow, but while there’s consensus that the market has a role to play, being viewed as positive is not enough, according to Vincent Prabis, Managing Principal at Hiscox ILS.
Across the space, the general view is that ILS, in providing insurance or reinsurance capital, is intrinsically ESG positive an asset class, given its role in protecting societies against natural perils.
“We’re trying to attract ESG-focused capital, we just need to do more,” he said. “The sheer fact that the asset class itself is positive is not enough and it was maybe a bit naive of us managers to believe that from the beginning. There’s a lot more work that needs to be done in the background.
“So, being part of a larger organization, at Hiscox our ESG committee drives day-to-day progress and reporting to ensure our underwriting function is acting as a steward of nature, encouraging the transition to a low carbon economy. And that is embedded in what we do at the ILS level, the reinsurance level, and the Group level,” said Prabis.