We speak to Christian Bruns, vice-president of insurance-linked securities at Zurich-headquartered private bank Clariden Leu, about what drives investment decisions into catastrophe bonds and why investors in Asia are now more open to the product.
What exactly are insurance-linked securities
ILS are fixed-income securities through which the insurance industry passes on pure insurance risk to the financial markets. They are issued by insurance and reinsurance companies as protection in the event of extreme insurance losses, for instance following severe natural catastrophes or a potential pandemic disease outbreak. The risk assumed by investors is related to a specific insurance loss such as earthquake, mortality or airplane crash.
What ILS products do you offer