Category: Interviews

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At Artemis’ ILS NYC 2025 conference, a high-profile panel of industry leaders highlighted the growing potential of parametric insurance-linked securities (ILS) to reshape risk transfer markets.

As climate volatility intensifies and capital markets look for transparent, uncorrelated opportunities, parametric ILS is drawing increased attention, not just for peak natural catastrophe risks, but for a much broader array of exposures.

Moderated by Martin Malinow, CEO of Parameter Climate, the session titled “The Parametric ILS Investment Opportunity” brought together Sandra DeSilva President & CEO, Mythen Re Ltd.; Tanguy Touffut, CEO, Descartes Underwriting; Urs Ramseier, Executive Chairman & CIO, Twelve Securis; and Sandeep Ramachandran, Portfolio Manager, Pier61 Partners.

Ramachandran opened the discussion by pushing back on the narrow definition of parametric products often associated with traditional “cat-in-a-box” structures.

“The thing that really strikes me every time is when you talk to different people about what a parametric is, you never get the same answer,” he explained.

“Everyone has a different opinion on what a parametric product is. Most people here would given the insurance and property cat nature of the risk that we’re involved in would think as Martin referenced earlier, a parametric product is perhaps a cat in a box or a cat in a circle where you have a hurricane with various payouts at different intensities, or perhaps an earthquake structure. And while those all do fall under the category I think it’s just too narrow a focus when you really think about what a parametric product is.

“So when I take a step back, I mean, anything that has an observable and independently verifiable index can effectively be a parametric product.”

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Malinow echoed that broader framing, adding, “A really great way to think about parametric products is there is an underlying index that needs to be meaningful to the buyer. It needs to proxy something and there’s an overlying financial structure that those are the financial terms and and there’s seven or eight parameters that sort of make up a contract that need to be spelled out in every contract.”

Moving forward, Touffut pointed to technological advances as a key driver behind the surge in demand for parametric solutions.

“We see a big uptake in terms of parametric products, and it’s mainly linked to new technologies,” he explained.

Adding: “So typically we have more and more data sources from satellite imagery, from radars, from solars that we can use through AI, or I would say innovative algorithms to be able to get rid of the basis risk.

“For instance if we look at wildfire through satellite imagery you can have a very clear understanding if it’s burnt or not burnt, and you don’t need to send loss adjusters on the ground to assess the damage and the technologies are getting better and better, and so the scope of parametric insurance is growing as fast as the tech industry is growing.”

For DeSilva, the opportunity lies not only in new perils but also in new markets. Parametric solutions, she said, are moving beyond large clients and into commercial, retail, and high-net-worth segments.

“There’s a lot of opportunity now where parametric is going down to more of that retail, commercial, high-net-worth residential space, where there is agriculture, there is businesses that are really affected that can use parametric products as an alternative to identifying new risk,” DeSilva said.

“We are seeing huge spikes now in where insurance is willing to get into the space, take on some more of that risk, and then the reinsurance, and we’re seeing the ILS space playing a big part of that. A lot of the traditional insurers, rated paper, may already be exposed in some of the areas for the nat cat space and so it’s crucial that we have more capacity coming into the market and ILS space is good for that.”

From the investor perspective, Ramseier was clear on the benefits parametric structures offer over traditional indemnity deals.

“From our perspective, we’re very interested in parametric transactions because it resolves quite a number of problems we have, particularly in private analyst,” Ramseier said.

“So trapped collateral was mentioned, there shouldn’t be any trapped collateral in parametric transactions. Then liquidity is important. So the liquidity is predictable of parametric transactions. We know after the event there is a quite a fast payout. So we can give higher liquidity to our underlying investors into the fund.”

He continued: “So there a lot of advantages of these parametric transactions and I think it’s just a matter of time that more and more of these risks are transferred to the ILS market and I think the ILS space is the natural home for parametric risks because of these advantages.”

While still a small portion of the overall ILS market, parametric transactions are poised for significant growth. The panelists agreed that the convergence of climate urgency, technological maturity, and investor demand for efficiency could make parametric ILS a more prominent fixture in portfolios going forward.

You can watch the panel session here or in the embedded video below.

Artemis’ next conference will be Artemis London 2025, on September 2nd. Register to attend here.

All of our Artemis Live video interviews have a focus on reinsurance, ILS and the efficiency of risk transfer and can be accessed directly from our Artemis Live page.

You can also listen in audio to these interviews by subscribing to the Artemis Live podcast here.

Our conferences provide exposure in front of a highly relevant, senior and specialised group of attendees. Plus you’ll benefit from exposure in front of our entire global readership, which averages more than 65,000 individuals every month.

For all enquiries regarding sponsorship opportunities for future Artemis events please contact events@artemis.bm.

Our conference sponsors for ILS NYC 2025 can be seen below. We thank them all for their valued support:

For all enquiries regarding sponsorship opportunities for future Artemis events please contact events@artemis.bm.

Parametric ILS gains momentum as investors seek precision, liquidity, & diversification: ILS NYC 2025 was published by: www.Artemis.bm
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Siena Capital Group, LLC, a private investment office with a focus on special situations and that counts former Gallagher Securities trading and distribution specialist Jack Stone as a Partner, is targeting the catastrophe bond and insurance-linked securities (ILS) market with a plan to launch a daily pricing platform later this year.

Siena Capital Group was founded in April 2025 by Luke Meehan (General Partner) and Jack Stone (Partner).

Stone most recently worked at Gallagher Securities where he syndicated primary cat bond transactions and led the firm’s catastrophe bond secondary market trading desk, which, according to sources, was a particularly active trading desk at the time of Stone’s departure.

As a result, Stone has deep expertise in the analysis for and delivery of catastrophe bond marks and pricing sheets, and this is one of the first targets for Siena Capital Group, as it looks to modernise market infrastructure in insurance-linked securities (ILS).

Artemis spoke with Stone to get a deeper understanding of the new company’s plans and what the cat bond market can expect from Siena Capital as it develops its technology and platform.

The key take-away is that this ambitious start-up wants to construct enterprise grade pricing infrastructure for the insurance-linked securities (ILS) marketplace.

Stone began by explaining the problem Siena Capital aims to solve, “Despite the growth of the catastrophe bond market, institutional infrastructure has not kept pace. Daily pricing is, for all practical purposes, non-existent. Broker sheets are still distributed via Excel, assumptions are often opaque, and managers and LPs are left without a consistent framework to validate NAV, compare portfolios, or defend valuations to auditors. It’s a system that creates friction at precisely the moment this asset class should be scaling with confidence.

“We’re changing that. In Q4 2025, Siena Capital Group will launch a fully web-based, audit-defensible catastrophe bond pricing platform—built entirely in-house, from the ground up. We use no third-party applications, no external data vendors, and no outsourced tooling. Every line of logic, every data pathway, and every pricing function is purpose-built to serve one mission: to deliver the first institutional-grade pricing utility for the ILS market.”

Stone went on to say, “This is not just another broker sheet. And we are not an ILS fund. We’re building what we believe will become the spine of cat pricing – a system that can support multiple scientifically and market-supported views of risk, track every mark over time, and provide full transparency into how and why valuations move.

“While many in the market are focused on ‘matching capital to risk,’ we’ve chosen to move upstream, starting with a much harder question: how do you price risk in a way that’s consistent, transparent, and defensible? Without that, any downstream structure—no matter how flashy—lacks real integrity.”

Stone went on to explain that Siena Capital aims to address these issues it sees in a way that is aligned with the needs of catastrophe bond market constituents.

“We’re not interested in building a demo-driven startup with a splashy UI and vague promises. Without being too forward, I fear that much of the recent innovation in this space appears designed to impress venture capital firms, not actual ILS managers or LPs,” he told us. “We will deliver a platform that’s serious, institutional-grade, and deeply useful to the professionals already operating in this market. The interface and functionality will be modeled on the best-in-class financial systems that managers and allocators already trust.”

The company sees this initial platform offering as core to its strategy but hopes to move further into the insurance-linked securities (ILS) and reinsurance investments space, by providing greater transparency to the sector in the hope of fostering a more liquid marketplace.

“We’re starting with cat bonds, but there’s no reason to stop there,” Stone said. “The infrastructure we’re building is designed to expand into collateralized re, sidecars, traditional reinsurance, ILWs, and ultimately any structure where investors need to understand and trust the reference point for risk.”

Hiring is already underway, and Stone provided some hints into what the market can expect to see in time.

“Our CTO brings more than a decade of experience leading engineering at one of the world’s largest financial technology platforms, with deep background in data architecture at global financial institutions. He will be leading a pod of talented engineers this summer as we run the sprint to Q4 launch,” Stone further stated. “He’s helping us build with the discipline and scale this market has long deserved, but has never had. When we formally introduce our team this summer, I believe our clients will immediately understand how seriously Siena Capital has invested in delivering them a best-in-class product. We cannot emphasise enough that we are sparing no expense to do this the right way, from the ground up.”

Adding that, “Importantly, we’re doing this without the interference of outside venture capital or the drag of corporate bureaucracy. This summer, we’re quietly testing the marks with a small group of long-standing ILS managers and allocators–investors who’ve been hungry for better pricing, willing to pay for it, and supportive of this initiative from the very beginning. Their feedback is directly shaping our rollout. Over the next 2-3 years, I am optimistic that managers who adopt our infrastructure will realise tremendous operational efficiencies, which is especially critical as some LPs become more fee-sensitive.”

Siena Capital has long-term ambitions to write primary personal and commercial lines insurance, which is why they have made their first investment with the aim of marshalling more LP capital to existing ILS managers.

Stone told Artemis, “Our ultimate goal is simple: to lower the cost of insurance for everybody.

“Looking ahead to the next five years, my business partner and I expect to personally capitalise U.S. admitted and E&S balance sheets, underwrite along the same infrastructure spine, and cede slices of risk into the ILS market, monitoring everything in real-time, at policy-level granularity.

“This is the future of the (re)insurance industry: where capital and risk meet transparently, dynamically, and without layers of inefficiency. So, of course we are interested in connecting risk to capital, just not yet.

“Getting tech and infrastructure right is the challenging part, and it’s the critical first step. Hiring top tier underwriting talent and managing the capital are the easy and fun parts, respectively.”

Siena Capital targets cat bond market with initial plan to launch daily pricing platform was published by: www.Artemis.bm
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Following the successful completion of its second catastrophe bond, the $50 million Black Kite Re Limited (Series 2025-1), Franz-Josef Hahn, CEO of reinsurer Peak Re, told us the issuance showcases the “tremendous potential” that insurance-linked-securities (ILS) solutions can play in narrowing protection gaps across Asia.

The Hong Kong headquartered global reinsurer returned to the catastrophe bond market in April, initially aiming to secure $50 million or more in retrocessional reinsurance from this Black Kite Re 2025-1 deal.

In late April, we reported that Peak Re had managed to successfully secure the targeted $50 million size, while the pricing of the notes were finalised at the upper-end of the initial guidance.

Issued via Hong Kong-based special purpose insurer (SPI), Black Kite Re, Peak Re’s latest cat bond builds on the success of the company’s debut cat bond from 2022, and according to Hahn, deepens the firm’s ability to “pioneer innovative risk transfer solutions for the Asia-Pacific region.”

The $50 million Black Kite Re 2025-1 issuance covers Japanese earthquake and typhoon risks on an industry loss trigger and per-occurrence basis for Peak Re, as well as the additional cover for Chinese and Indian earthquake risks on a parametric basis, all across a three-year period from issuance in late April.

“This latest transaction reflects our commitment to meeting the evolving needs of cedants and creating value for investors by introducing new risks and structures tailored to the region’s unique challenges. It represents another step forward in our mission to strengthen resilience for our clients and their communities,” Hahn explained.

He continued: “Our primary motivation for this issuance was support our growth ambitions in key markets.  In addition, we expect Black Kite 2025-1 to help our regulatory solvency requirements under Hong Kong’s Risk Based Capital regime. By securing collateralized retrocession capacity, Peak Re enhances its balance sheet resilience and ensures long-term sustainability.”

Hahn also highlighted how Black Kite Re 2025-1 introduces new perils, particularly the first-ever use of Indian earthquake risk in a 144A cat bond format, marking a significant step that expands opportunities for both issuers and investors.

“This issuance underscores our focus on developing markets, particularly in Asia and its emerging markets, where Peak Re is based and protection gaps persist despite increasing catastrophe exposures,” Hahn added.

Sascha Bruns, Head of Global Retrocession at Peak Re, highlighted the importance of the deal’s geographic breadth: “The inclusion of Indian earthquake risk in a 144A catastrophe bond is a market first, reflecting our deep understanding of the region’s risks and our confidence in the underlying data. By combining developed markets like Japan with emerging markets such as India and China, Black Kite Re II offers a unique diversification opportunity for investors.”

As mentioned, the inclusion of Indian earthquake risk in a 144A catastrophe bond is a first for the market, representing a major development in expanding risk transfer solutions across Asia.

Bruns also went on to explain that in order to ensure transparency and swift payouts in regions where data quality has seen meaningful progress, Peak Re opted for parametric triggers for both Indian and Chinese earthquake risks.

Bruns noted that this structure underscores Peak Re’s capacity to bring untapped risks to the global ILS market, helping to address persistent protection gaps in underinsured areas of Asia.

For the Japanese exposures, typhoon and earthquake, Bruns explained that the cat bond uses industry loss triggers, which offer broad coverage, including for secondary effects such as heavy rainfall, tsunamis, and fire-following events.

While for India and China, parametric triggers were selected based on Peak Re’s confidence in its understanding of local seismic risk.

Another key factor to highlight is that this Black Kite Re Limited (Series 2025-1) deal marks the first reuse of a Hong Kong SPI structure, a move designed to enhance operational efficiency and strengthen Hong Kong’s position as a regional hub for ILS activity.

“Black Kite Re II reflects Peak Re’s commitment to innovation in the catastrophe bond market. By being the first reuse of a Hong Kong SPI and in combining multiple perils and territories, we’ve created a structure that balances security, efficiency, and diversification,” said Iain Reynolds, Head of Third-Party Capital at Peak Re.

He added: “This issuance reinforces Hong Kong’s position as a growing ILS hub and demonstrates Peak Re’s ability to deliver tailored solutions to investors that ultimately help us serve our cedants.”

In addition, Reynolds states that Black Kite Re II underscores Hong Kong’s growing position as a competitive centre for ILS activity.

Reynolds also credited the Hong Kong Insurance Authority’s support for facilitating a smooth issuance process and helping advance the development of new structures in the cat bond market.

Furthermore, Hahn added that the transaction reflects the growing maturity of Asia’s ILS sector and its capacity to narrow protection gaps.

“Black Kite Re II showcases the tremendous potential of ILS solutions in narrowing protection gaps across Asia. By integrating developed and emerging markets, we’ve created a diversifier that supports the long-term growth of the region’s insurance and reinsurance sectors. This issuance also demonstrates the increasing maturity of Hong Kong’s ILS market, which we believe will continue to play a key role in driving innovation globally.”

He concludes: “Black Kite Re II is not only a testament to Peak Re’s innovative approach but also a significant milestone for the global ILS market. Its introduction of Indian earthquake risk, multi-territory coverage, and the reuse of a Hong Kong SPI highlight the evolution of catastrophe risk securitization in Asia.”

As a reminder, you can read all about this Black Kite Re Limited (Series 2025-1) catastrophe bond from Peak Re, as well as every other cat bond transaction in our extensive Artemis Deal Directory.

Black Kite Re II shows ILS can narrow Asia’s protection gap: Peak Re CEO was published by: www.Artemis.bm
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This video features an expert panel discussing the opportunity for investors in the growing casualty insurance-linked securities (ILS) space at our Artemis ILS NYC 2025 conference, which was held in New York on February 7th 2025.

ILS NYC 2025 was Artemis’ eighth catastrophe bond and insurance-linked securities (ILS) conference held in-person in New York and saw more than 425 registered attendees enjoying insightful debates from our expert speakers, as well as valuable networking opportunities throughout the day.

Attendees from across the globe assembled to hear thought-provoking insights from insurance-linked securities (ILS) market leaders, all under the theme of “Capturing opportunities (established & new).”

Our latest video from the Artemis ILS NYC 2025 conference features the fourth panel discussion of the day, which was on the emerging casualty insurance-linked securities (ILS) market where investors are accessing the returns of longer-tailed casualty insurance risks, titled: The casualty ILS investment opportunity.

The panel discussion was moderated by John Seo, Co-Founder, Managing Director, Fermat Capital Management.

He was joined by: David Ni, Chief Strategy Officer, Enstar Group; Andras Bohm, Head of U.S. Capital Solutions & Advisory, BMS Group; Amy Stern, Chief Executive, Reinsurance, Ledger Investing; and Bob Forness, CEO, MultiStrat Group.

While casualty insurance-linked securities (ILS) may seem nascent to some, the market has been in development for a number of years now. The panellists set the scene and explained what this segment of the ILS asset class is, as well as why casualty risks can be attractive investments.

This panel discussed the evolution and potential of the casualty insurance-linked securities (ILS) market, forecasting an opportunity to grow the segment from an estimated $3-4 billion current base to potentially exceeding $10 billion by 2026.

Key points in the discussion included the shift from catastrophe-focused ILS to casualty ILS, driven by improvements to the infrastructure of the ILS market, as well as investor interest in accessing new classes of insurance risk.

The casualty ILS market’s growth is largely attributed to risk sourced through whole account quota shares, which the panel said enable stable, diversified portfolios to be constructed for investors.

The discussion also highlighted the importance of exit solutions to provide investor certainty of liquidity, the need for strong partnerships, and that underwriting discipline is key to manage risks and ensure sustainable growth of the casualty ILS space.

Watch the full video of this casualty ILS market focused panel discussion at ILS NYC 2025 (embedded below), for unique insights into the developing casualty ILS market, what investors need to know about this asset class, and how cedents can benefit from access to efficient capacity from the capital markets.

More videos will follow in the coming weeks from our ILS NYC 2025 conference.

Artemis’ next confirmed conference dates will be (please save them): Artemis London 2025 on September 2nd 2025, and Artemis ILS NYC 2026 on February 6th 2026!

All of our Artemis Live video interviews have a focus on reinsurance, ILS and the efficiency of risk transfer and can be accessed directly from our Artemis Live page.

You can also listen in audio to these interviews by subscribing to the Artemis Live podcast here.

Our conferences provide exposure in front of a highly relevant, senior and specialised group of attendees. Plus you’ll benefit from exposure in front of our entire global readership, which averages more than 65,000 individuals every month.

For all enquiries regarding sponsorship opportunities for future Artemis events please contact events@artemis.bm.

Our conference sponsors for ILS NYC 2025 can be seen below. We thank them all for their valued support:

For all enquiries regarding sponsorship opportunities for future Artemis events please contact events@artemis.bm.

The casualty ILS investment opportunity – ILS NYC 2025 video was published by: www.Artemis.bm
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