Created: Oct 14, 2025 08:20 AM (Updated: Oct 14, 2025 08:20 AM)<\/p>\n
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Darren Redhead, chief executive of Perren Capital Management, left, Dan Conklin, Alternative Capital Partners Americas, Swiss Re, Joe Tolen, senior investment director \u2014 credit investment group at Cambridge Associates discuss the future of ILS (Photograph by Claire Shefchik)<\/p>\n
Global pension funds are increasingly eyeing the insurance-linked securities market looking for higher yields and portfolio diversification, sparking talk of a new wave of institutional capital that could reshape the sector.<\/p>\n
However, industry experts said that educating these investors on ILS would also be key to making the influx work.<\/p>\n
At yesterday\u2019s \u201cWhen Markets Shake, ILS Holds\u201d panel at ILS Bermuda Convergence 2025, held at the Hamilton Princess & Beach Club, senior executives said interest was rising far beyond traditional reinsurance hubs.<\/p>\n
\u201cDefinitely pensions, both in North America, which are very large cheque writers, but we\u2019re seeing pensions in Peru and Chile look at this. We\u2019re seeing pensions in Mexico look at this. We\u2019re seeing the Apac [Asia-Pacific] community really grab a hold of this, and of course, the European Community as well,\u201d said Dan Conklin, Alternative Capital Partners Americas, Swiss Re.<\/p>\n
\u201cBut I think in terms of dollar size and amount of cheques, the pension community is really taking a hard look at this and it will be interesting, because a flood of hundreds, or if not billions, of capital is an interesting predicament that I think we all are working to figure out.\u201d<\/p>\n
Another panellist, Joe Tolen, senior investment director \u2014 credit investment group, Cambridge Associates, noted that \u201cthe size of institutional money dwarfs what\u2019s currently in ILS, so even a moderate allocation shift has the power to reshape the market\u2019s dynamics.\u201d<\/p>\n
He said the opportunity for growth was major but added that transparency and education would be key to meeting pension investors\u2019 expectations.<\/p>\n
He highlighted that he said he spoke to representatives of a $40 billion public pension plan in Indiana, \u201cwhere we had a sophisticated board, but not a sophisticated investor. A sophisticated board made up of firefighters, teachers, judges. They had a lot of questions on ILS, despite it being a very small portion of the overall defined benefit portfolio,\u201d he said. He noted that they ultimately \u201cthrew up their hands\u201d at the plan.<\/p>\n
While the panel was upbeat about the opportunity for pension inflows, some urged caution.<\/p>\n
Darren Redhead, chief executive of Perren Capital Management, questioned whether catastrophe bonds \u2014 the instruments most pensions favour \u2014 are truly as liquid as they appear. \u201cIs it a liquid instrument? Is it an urban myth? If you look at how much is actually traded, the $50, $60 billion per year\u2026 I\u2019d come with a health warning to people on that point in that [it\u2019s] not really liquid.\u201d<\/p>\n
That warning pointed out the need to make sure expectations align with the risks.<\/p>\n","protected":false},"excerpt":{"rendered":"Created: Oct 14, 2025 08:20 AM (Updated: Oct 14, 2025 08:20 AM) Darren Redhead, chief executive of Perren…\n","protected":false},"author":2,"featured_media":74108,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[114,268,85,46,266,267,6369],"class_list":{"0":"post-74107","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-il","11":"tag-israel","12":"tag-personal-finance","13":"tag-personalfinance","14":"tag-reinsurance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/74107","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=74107"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/74107\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/74108"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=74107"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=74107"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=74107"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}