LQG 2023/06/13 – 18:30 – Insurance as an asset class – What could possibly go wrong? – Markus Gesmann and Quentin Moore – at Lloyds – Hybrid

Insurance as an asset class – What could possibly go wrong?

Seminar by Markus Gesmann and Quentin Moore

13th June 2023 – In-Person and On-Line – Hybrid at Lloyd’s

Generously hosted by Lloyd’s in the iconic Lloyd’s building to be found at One Lime Street, London, EC3M 7HA Markus Gesmann & Quentin Moore will discuss Insurance as an asset class. There is much more to it than you might think!
Insurance companies have traditionally managed other people’s volatile risks and liabilities into relatively predicatble earnings streams. However, as the climate changes and other man-made and natural phenomena significantly increase volatility for everyone, investors are increasingly seeing opportunites to deploy capital against this volatility to make attractive returns. As Warren Buffet has stated many times, insurers take premiums upfront from their customers and if they pay out less in claims than they receive in premiums, they get ‘free’ money to invest for themselves. So what could possibly go wrong?

Understanding risk, whether at individual policy level or at aggregate portfolio level, is key. And not just a snapshot of risk, but risk over time, as many of the industry’s most expensive problems took years if not decades to manifest.

The talk will give an overview of the different opportunities to access insurance risks and give examples of how risks are priced and underwritten when often there is little data and information available.

 

Markus Gesmann and Quentin Moore

Insurance Capital Markets Research (ICMR)

Markus Gesmann & Quentin Moore are co-founders of ICMR and previously spent many years leading research and analysis within the Lloyd’s of London insurance market and helped introduce many new statistical approaches to measuring, monitoring and reporting on insurance and reinsurance risk.

They also worked at Lehman Brothers in 2007/08 and in the Insurance-Linked Securities market in Bermuda. In 2020, just before the first Covid lockdown, they launched Insurance Capital Markets Research (ICMR), a quantitative research consultancy with a focus on the Lloyd’s of London market and the wider global specialty (re)insurance risk. In 2021 they launched the RISX equity index as a benchmark for investment in specialty (re)insurance and Lloyd’s.

Further details about ICMR are available here.