Luca Albertini, Leadenhall Capital Partners, May 2020 - on ILS, cat bonds, reinsurance and Covid-19
Episode 8, May 22, 2020, 08:48 AM
Luca Albertini, CEO of London headquartered insurance-linked securities (ILS) and reinsurance related investments manger Leadenhall Capital Partners LLP, joined us for a discussion about the state of ILS and reinsurance under Covid-19 pandemic conditions.
Luca Albertini, CEO of London headquartered insurance-linked securities (ILS) and reinsurance related investments manger Leadenhall Capital Partners LLP, joined us for a discussion about the state of ILS and reinsurance under Covid-19 pandemic conditions.
Albertini noted the ability of the insurance-linked securities (ILS) and catastrophe bond market to bounce back from the initial effects of broader financial market volatility due to the pandemic.
He went on to discuss the market opportunity to provide more pandemic insurance and reinsurance coverage, as well as the role of ILS funds and ILS investors in delivering on that.
"Something can be structured which affirmatively protects against pandemic for the commercial insurers. If we find that the demand is actually too big, then yes there is a role for public-private partnerships where you could have some backstop from the various governments," Albertini said.
Further explaining that, "Then, like we've seen for flood or terrorism, you could have the cat bond market, or the ILS market, providing some capacity to the governments."
Albertini noted the ability of the insurance-linked securities (ILS) and catastrophe bond market to bounce back from the initial effects of broader financial market volatility due to the pandemic.
He went on to discuss the market opportunity to provide more pandemic insurance and reinsurance coverage, as well as the role of ILS funds and ILS investors in delivering on that.
"Something can be structured which affirmatively protects against pandemic for the commercial insurers. If we find that the demand is actually too big, then yes there is a role for public-private partnerships where you could have some backstop from the various governments," Albertini said.
Further explaining that, "Then, like we've seen for flood or terrorism, you could have the cat bond market, or the ILS market, providing some capacity to the governments."