Terrorism risk useful but complex diversifier for ILS funds

Posted On: Oct. 16, 2019 5:59 AM CST

Investors view terrorism insurance and reinsurance risks as a useful but complex diversification opportunity for their insurance-linked securities funds, Artemis reports. Florian Steiger, catastrophe bond strategy lead at Swiss ILS manager Twelve Capital AG, said that terrorism risks could potentially become as much as 2%-4% of ILS fund portfolios as investors and managers continue to look to diversify away from natural catastrophe risks.