Sentiment for the insurance-linked securities (ILS) space is positive across all segments and there’s increasing interest from new investors and optimism around the private side of the market, while alignment and transparency remain key, according to industry experts.Artemis held its sixth Monte Carlo Executive Roundtable at the 67th Rendez-Vous de Septembre (RVS) in Monaco last week, sponsored by SCOR Investment Partners and Vantage Risk.On the day, nine experts discussed the current and future prospects of the ILS marketplace, delving into investor sentiment, the importance of alignment, transparency and discipline, the potential for casualty ILS, ongoing education of the asset class, and more.For this year’s Monte Carlo Rendez-Vous Executive Roundtable we were joined by the following participants: “We are currently seeing positive investor sentiment across the board.

Investors have been pleased with the performance of all market segments, cat bonds and private ILS, over the last two years,” said Sidney Rostan, Head of ILS Strategies at SCOR Investment Partners.He went on to note that although spreads have come down, “they’re still at historically attractive levels.” “For example, in the cat bond space, the yield of the market is still above 10%.Therefore, in terms of relative value, cat bonds still stand out compared to many traditional asset classes.

Some existing investors are willing to increase their allocation, even though it has already mechanically grown due to the good retained earnings in recent times,” added Rostan.Importantly, SCOR Investment Partners is also seeing interest from new investors, as well as more traction in the private ILS side.“So, yes, sentiment is good here as well and we have a positive outlook for the asset class overall,” he said.

Peta White, President of Vantage Risk, explained that her firm is “very excited” about the private ILS space, and is pleased to see that investors are in active dialogue with the industry.“We’re really excited about the collateralized side of the market.ILS has been a core part of Vantage since inception, and we have a three pillar platform being specialty insurance, specialty reinsurance, and then partnership capital.

We deployed $1.5 billion of investor capital by aligning portfolios closely with investor appetite.So, yes, we feel there’s tangible momentum across ILS.“From our side, what matters most, and to really solidify some of these relations going forward, is alignment and transparency.

We feel that those who communicate well, avoid surprises and demonstrate alignment will continue to attract those capital inflows,” said White.Alignment of interest and transparency were mentioned numerous times by roundtable participants, as was the importance of communication and education to address investor concerns about risk assessment and portfolio construction.Discipline in the industry was also debated, as was the need for sustainable capital and the fact more insurers and reinsurers now look to the ILS space as a strategic way to find coverage.

Investor maturity, terms and conditions, pricing, and year-end expectations were also hot topics on the day, as was the potential for casualty ILS, although many agreed that there’s work to do here to alleviate concerns and highlight the benefits.We’ll be releasing the full 2025 Artemis Monte Carlo Executive Rendezvous Roundtable in the coming weeks, so stay tuned to read much more commentary from our sponsors and important ILS market insights from all of the other participants...

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