After a challenging few years that began with the hurricane-heavy season of 2017, the insurance-linked securities (ILS) market has entered a sustained period of strong returns.The rebound is also reshaping recruitment trends, with rising demand being seen for talent in business development and analytics, according to 20Twenty Search’s Jason Sykes.Speaking with Artemis around the Monte Carlo Rendez-vous event, Sykes, who serves as an Advisor at the re/insurance focused recruitment and executive search specialist, explained that pricing is holding up within the ILS market, whilst further stating that the asset class is “demonstrating its value proposition to an ever-wider type of investor.” Until recently, the ILS recruitment market has been notably constrained, with London and Zurich being more challenging than New York and Bermuda, making it especially difficult for early career candidates to enter the industry.But, as Sykes explains, two key areas that have experienced higher demand in the ILS recruitment market are business development and analytics.

“Given the current strong market conditions, the biggest area of concern for ILS funds is raising new assets, and this has translated into busier than usual recruitment activity in the asset raising space.It is estimated there are between 60-80 business development professionals raising assets in ILS in the worldwide market (including investor relations specialists), with even the larger ILS funds typically employing only small teams of around four to five asset raisers,” Sykes said.He continued: “In strong market conditions these professionals are earning packages of up to $1million to $1.5million for US-based professionals and thus have little incentive to leave.

12-month non-compete clauses are common, which mean moving to a new firm and essentially having to prove oneself from scratch, would be high risk.“These dynamics have resulted in companies such as Mount Logan Re and Aeolus hiring business development talent from non-ILS funds within the broader alternative assets sector.Such individuals can arguably grasp the complexity of ILS products in short order, whilst being able to tap into a fresh community of investors hungry for non-correlated returns.” Alongside the business development space, Sykes noted that there are also avenues for entering the market from outside the ILS sector, notably through analytics.

“Analytics expertise offers one such route for professionals already working in traditional reinsurance, with demand for quantitative analysts, actuaries and cat modellers on the higher side when compared with other areas of the ILS market.  The need for ILS funds to provide a more sophisticated and detailed analysis of risk has continued to drive talent demand in this space,” Sykes told Artemis.Adding: “Most recently, a wave of start-ups could get talent already in the market moving again and hopefully help create a proposition the industry can sell to ambitious career starters.” Sykes also noted that the expansion of the non-cat ILS sector is another key reason to stay optimistic about a rebound in the recruitment market.Sykes highlighted how non-cat ILS is increasing demand for business development professionals, with both ILS knowledge and contacts with investors who may be interested in investing in a lower volatility / higher return investment strategy.

As well as this, Sykes also noted that the emergence of parametric insurance in the ILS market highlights the need for expertise in new distribution methods and the digital-assets economy.It’s worth noting that parametric insurance has experienced significant growth within the ILS market in recent years fueled by advances in technology, increasing climate-related risks, and investor demand for efficient, transparent risk transfer.“This distribution innovation, this fresh capital, and these start-ups, are already beginning to open up the talent flow, driving demand for business development professionals, analytics capability and underwriting talent, particularly on the casualty side,” Sykes added.

“At 20TwentySearch we’re optimistic about the brightening recruitment outlook in the rapidly diversifying ILS sector.We stand ready to help identify and place top-tier talent in senior leadership and specialised roles across the industry, leveraging our combined 35 years in the market and our strategic expertise across the distribution chain.“With a global network of contacts and clients in the US, Bermuda, the UK, and Europe we’re well placed to understand your evolving goals and place ambitious and committed individuals who will help you meet and perhaps even exceed them,” Sykes concluded.

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