What will climate change mean for insurance-linked securities?

14.11.2019 10:25 - Schroder Investment Management (Switzerland) AG (LUX & CH)

What will climate change mean for insurance-linked securities?

ILS has close ties to natural disasters but we believe climate change will have a limited impact on the asset class.

A question often asked by investors considering investing in insurance-linked securities (ILS) is whether climate change will have a negative impact on the asset class. The answer is not straightforward. Climate change will not necessarily have a negative impact on an ILS portfolio or on the ILS market as a whole, nor does it make these instruments more attractive. However, there may be some positive side effects.

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