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Conference to focus on innovative cat bond

Transferring operational risks, such as from cyberbreaches and rogue trading, to third-party investors through cat bonds, will be discussed at ILS Bermuda Convergence 2016.

Two speakers from Credit Suisse, which brought to market the first insurance-linked securities to cede operational risks to third party investors, will discuss the topic during the two-day event in November.

Jonathan Young, director of investment banking at Credit Suisse, and Antoine de Sarrau, director of global markets, will co-present a session on operational risk catastrophe bonds.

The global investment bank is using a Bermudian-based special purpose insurer, Operational Re Ltd, as a vehicle for its innovative bond that would offload risk from events including rogue trading and cybercrime.

An explanation of how the structure of the triggers provide “novel protection for investors” is expected to be part of the presentation.

The ILS Bermuda Convergence is now in its fourth year, and will take place at Hamilton Princess on November 9 and 10.

Keynote speakers are Pablos Holman and Vincent Dowling. Mr Holman is a futurist, inventor and hacker, while Mr Dowling is well-known in the insurance and reinsurance sector, and cofounded Dowling & Partners.

Among the other industry speakers is Weston Tompkins, of Securis Investment Partners, who will speak on what US institutional investors want from ILS.

Loremzo Volpi, partner and head of business development with Leadenhall Capital Partners, will focus on the wave of regulatory changes, such as Solvency II, and how they provide life investment opportunities.

While Tom Johansmeyer, assistant vice-president with Verisk Insurance Solutions, will look at new sources of risk, better hedging, and opportunities for growth.

More than 300 delegates are expected to attend this year's ILS event. Last year delegates came from 13 countries.

Bermuda is the leading jurisdiction for insurance-linked securities and catastrophe bond issuance. The Bermuda Monetary Authority reported, as of the first quarter of this year, net issuance of bonds increased the total stock of outstanding capacity to $26.5 billion, an increase of 13 per cent year over year.

The Bermuda Stock Exchange accounts for approximately 75 per cent of the global market capitalisation. Current data from the BSX reported 159 securities listed with an aggregate market capitalisation of approximately $19 billion.

For further detail about ILS Bermuda Convergence 2016, visit www.ilsbermuda.com

Novel approach: at ILS Bermuda Convergence 2016, two speakers from Credit Suisse will discuss operational risk cat bonds, which can be used to transfer risk from cyber events and rogue trading

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Published October 19, 2016 at 9:00 am (Updated October 18, 2016 at 7:33 pm)

Conference to focus on innovative cat bond

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