The important role of climate models in ILS - Aeolus Capital Management

Episode 83,   Nov 23, 2021, 09:41 AM

This is the audio from a recent video interview on climate risk modelling with executives from reinsurance and insurance-linked securities (ILS) specialist manager, Aeolus Capital Management.

Our latest Artemis Live video interview saw us exploring the importance of climate risk models in the management of portfolios of reinsurance and insurance-linked securities (ILS), with senior executives from Aeolus Capital Management. 

Aeolus' Head of Research, Dr. Pete Dailey, and Partner, and Chief Analytics Officer Frank Fischer, joined us to discuss the importance of climate models in their work and how these tools are improving. 

We also explored how Aeolus is leveraging climate modelling, data, and analytics, to inform its portfolio construction and management, asking Dailey and Fischer how they see the use of climate inputs to ILS decision-making evolving. 

Taking into account climate change related factors in how reinsurance-related risks are modelled, assessed and selected for portfolios, is deeply integrated into the processes followed by Aeolus. 

It's also critical to explain how climate is factored into decision-making, when it comes to having conversations with ILS investors, Dailey and Fischer explained.