Elementum Partner and Head of Analytics, Jake Weber, discusses the importance of active management and proprietary risk analysis as part of Elementum’s overall view of risk in Hedgeweek’s Insurance-linked Securities in Focus 2021 special report.
The peak perils of hurricane and earthquake receive the most attention when catastrophe risk gets transferred in the insurance-linked securities (ILS) market. However, non-peak perils can contribute risk to ILS investments that may be difficult to quantify and easy to overlook. This is one reason why proprietary analysis is critical in this space.