The recent Artemis London 2025 conference illuminated the significant potential for expansion within the catastrophe bond and insurance-linked securities (ILS) sector. Discussions among leading experts underscored that sustained growth in this dynamic market is inextricably linked to cultivating greater clarity and fostering open dialogue across all stakeholders. The prevailing sentiment was that embracing modernization and refining communication channels are not merely advantageous but essential for harnessing the full scope of opportunities available in this evolving financial landscape.
Held on September 2nd, the Artemis London 2025 event drew over 220 professionals representing more than 120 diverse organizations from around the globe, including industry participants, insurance and reinsurance specialists, institutional investors, and service providers. This fourth iteration of the ILS conference in London maintained its signature format: in-depth panel discussions allowing experts to delve deeply into their subjects, complemented by extensive networking intervals. These breaks facilitated crucial interactions and discussions among attendees, spanning a wide geographical reach from New Zealand to Latin America and Asia, solidifying the conference's international standing.
The day commenced with a compelling keynote address delivered by Nylesh Shah, Head of Insurance Supervision for the London Market at the Prudential Regulation Authority (PRA). Shah outlined the PRA's vision for the future of UK ILS, emphasizing the regulator's commitment to maintaining financial stability while cultivating a competitive market. He detailed recent regulatory reforms designed to streamline requirements, simplify approval processes, and expedite contract renewals. Shah articulated the PRA's dual objective of balancing innovation with credibility, highlighting a future intention to upgrade Protected Cell Company (PCC) regulations to accommodate multiple contracts—a key industry request. He stressed the PRA's agility in supporting ILS market expansion, particularly through swift authorizations and active engagement with market participants. Transparency and communication were paramount themes in his address, with success metrics tied to an increase in ILS transactions and a broader contribution to reducing global under-insurance.
Following the keynote, the conference delved into specialized panel discussions. The initial panel, moderated by Luca Albertini of Leadenhall Capital Partners LLP, concentrated on the private ILS market. Participants including Chantal Berendsen (Albourne Partners), Niklaus Hilti (Euler ILS Partners), and Stefan Knab (PG3 Insurance Core AG) explored the evolution and current state of private ILS investments, contrasting them with catastrophe bonds. They highlighted the diverse investment avenues in private ILS, offering extensive geographic diversification and varied risk profiles. The discussion accentuated the critical roles of transparency, consistent communication, and the development of enduring relationships between managers and investors. While acknowledging challenges such as illiquidity and complexity in private ILS, the panel also emphasized its potential for higher returns through leverage and customization, examining the influence of market cycles, the investor's role, and the strategic importance of nurturing relationships through fluctuating market conditions.
The second session shifted focus to catastrophe bonds, moderated by Tanja Wrosch from Twelve Securis. This panel featured Joe Tolen (Cambridge Associates), Gina Hardy (North Carolina Insurance Underwriting Association), Andre Rzym (Man AHL), and Andy Palmer (Swiss Re Capital Markets). The discussion revolved around the market's growth trajectory and the challenges of sustaining it amidst increasingly competitive reinsurance conditions. Panellists underscored the need for efficient market processes and continued efforts to attract new cat bond sponsors, including corporate entities and governments. They acknowledged the ongoing challenge of marketing cat bonds and other ILS to investors, reiterating the vital importance of education and transparency. Communication with sponsors also emerged as a key theme. The panel further addressed the potential impact of ESMA's recommendations on UCITS asset eligibility on the cat bond market and explored prospects for product innovation within this space.
The third panel session ventured beyond natural catastrophe risks, exploring the broadening non-catastrophe ILS market. Moderated by Des Potter (Lloyd's, INED – Howden Capital Markets & Advisory), the panel included Jonathan Gray (Pool Re), Sébastien Bamsey (Howden Capital Markets & Advisory), Callum O’Rourke (Neuberger Berman), and Fergus Reynolds (Cedar Trace). This discussion illuminated the growing, albeit still relatively small, non-cat ILS market, specifically mentioning terrorism, cyber risks, and quota share structures for accessing diverse risk types. Innovations such as stop-loss notes and the potential for investors to access new risk classes via Lloyd's were also explored. The panel stressed the necessity of transparency, precise modeling, and building investor confidence, particularly for non-property risks. The role of London Bridge in facilitating ILS transactions at Lloyd's and the importance of ongoing regulatory responsiveness and cost-efficiency were also highlighted. The consensus was that significant growth potential exists in non-cat ILS, driven by the demand for flexible capital and diversification benefits, but effectively communicating these opportunities to cedents and investors is paramount.
The fourth panel, led by Jack Stone (Caterina Technologies, Inc.), addressed modernization and liquidity needs within the expanding ILS market. Florian Steiger (Icosa Investments AG), Martin Dietz (Legal & General Investment Management), Simon Harris (Moody’s Corporation), and Sina Thieme (WTW) discussed the necessity of standardized data and technology to automate manual processes and enhance investment decisions. They tackled the complexity of integrating ILS investments into standard fixed income processes due to their unique structures. The importance of transparency and robust exposure data for informed secondary market trading and granular information availability was emphasized. The panel also debated the benefits of artificial intelligence in refining market processes and the role of ratings in attracting a broader investor base. A strong consensus emerged that standardization and transparency are critical for the continued and accelerated growth and efficiency of the catastrophe bond and ILS market.
The final panel session served as a forward-looking discussion, anticipating key issues for the ILS market ahead of upcoming reinsurance events and the year-end issuance period. Moderated by Harry White (PCS, Verisk Insurance Solutions), the panel featured Luca Albertini (Leadenhall Capital Partners LLP), Nicky Payne (McGill & Partners), and Niklaus Hilti (Euler ILS Partners). Central themes included the market’s capacity to manage increased deal flow, aligning capital raising with available opportunities, and maintaining discipline regarding attachment points and terms. The influence of macroeconomic factors, such as interest rates and geopolitical tensions, on investor allocations was also explored. The session reinforced the importance of market discipline to prevent unforeseen challenges and reiterated the critical need for enhanced data transparency and standardization. Potential areas for expansion were identified, encompassing traditional property catastrophe business, non-catastrophe exposures, and parametric products. Furthermore, the ongoing complexities of managing rising peril frequency and severity were discussed, with attachment points highlighted as a crucial aspect requiring equitable balance between sponsors and capital providers. Throughout this discussion, communication consistently emerged as a vital element, with panellists agreeing that managing relationships with both cedents and investors throughout market cycles is essential for setting realistic expectations.
The overwhelming takeaway from both the stage discussions and networking sessions was the ILS market’s keen awareness of its potential for continuous growth and expansion. This ambition, however, unfolds against the backdrop of an increasingly competitive reinsurance landscape. Consequently, maintaining a steadfast commitment to transparency and communication will be indispensable as the market navigates the remainder of the current year and moves into 2026. Keeping all parties well-informed and educated on evolving appetites and allocation strategies will be paramount. Moreover, the imperative for modernization is a persistent undercurrent within this vibrant market, poised to become an ever-more prominent area of focus for insurance-linked securities participants in the coming period.
