The growth and influence of the insurance-linked securities (ILS) space has led to a convergence of the service offering PwC Bermuda provides to its clients, according to Megan Green, a Partner in the PwC Bermuda Asset Management Assurance Group.
In a recent interview with our ILS focused sister publication, Artemis, as part of its series of live video interviews, PwC Bermuda’s Green commented on the positive effect ILS market growth has had on its offering.
“If I reflect back almost 20 years ago, when I first joined the profession and particularly in Bermuda, you had this strong insurance group, and asset management group in audit and they were somewhat divided,” she explained. “Now you look at it, and we’re just completely integrated because of the ILS space.”
During the interview, Green also said that in her work with Bermuda ILS players, both capital raising and investor appetite is a hot topic.
“It’s been a tough run, just with cat events, and you kind of throw COVID in the mix. So, capital raising is obviously a focus of a lot of ILS managers, it’s been tricky over the last 12 to 18 months for a variety of reasons,” said Green.
On a positive note, Green said that capital has come into the market at mid-year, but given recent years have highlighted the volatility of catastrophe risk, “it’ll be interesting to see what investors are looking for, if they’re looking to mitigate that in some way, with other risks or products.”
“Also, thinking of COVID, it kind of heightened that risk of unpriced risk, where investors didn’t know that they were exposed to some of this. So, there’s a big focus on tightening that up and making sure that the risk is being priced appropriately,” she added.
Trapped collateral, which has been an issue for some years now, was also discussed by Green during the interview with Artemis.
You can watch the full video interview with PwC Bermuda’s Megan Green below.
