As highlighted by Artemis, a leading ILS news and data platform:

“Panel sessions that had a corporate risk management theme saw participants stating that they lacked a clear understanding of how ILS transactions could fit into their enterprise risk management programs and insurance towers.

Our panel on public sector and sovereign risk transfer also highlighted the need for governments and public sector bodies to be better educated on the need for risk transfer, as well as how to access insurance and reinsurance capital from the ILS market.”

Mr. Lim Cheng Khai, Executive Director of the Financial Markets Development Department at the Monetary Authority of Singapore, echoed this need for innovation and education during the Artemis ILS Asia 2024 conference:

“We encourage the ILS industry to use Singapore as a testbed for innovative products, tapping into our deep sustainable finance and digital asset ecosystems. MAS will continue working closely with the ILS industry to offer Singapore as a conducive base for Asia’s ILS market and to match Asia’s risk financing needs with growing investor interest.”

Additionally, the Belt and Road Initiative (BRI) presents a critical case for ILS solutions. Several transport corridors under the BRI traverse highly earthquake-prone regions that suffer from very low insurance penetration, underdeveloped local markets, and regulatory barriers that limit traditional (re)insurance solutions. In such areas, ILS – particularly parametric catastrophe bonds – can be among the few effective mechanisms for closing the protection gap and ensuring long-term infrastructure resilience. China’s National Financial Regulatory Administration (NFRA) continues to promote Hong Kong as a launchpad for ILS solutions and encourages insurers to utilize the region for catastrophe bond issuance.

All these developments inspired the creation of our comprehensive ILS education programme, designed to examine ILS from three critical perspectives:

1. As an investment asset class offering uncorrelated returns and ESG alignment
2. As a risk transfer solution for (re)insurers seeking capital efficiency
3. As a sovereign disaster risk finance mechanism for emerging markets

Over the past four years, we’ve delivered 14 online cohorts and introduced an in-person Swiss Summer School, offering participants the opportunity to network with global industry leaders and UN agencies while exploring advanced content. Our alumni represent a diverse spectrum of the global ILS ecosystem, including professionals from major (re)insurers (32%), brokers (13%), asset managers and investment banks (11%), sovereign risk pools (9%), development institutions (8%), and regulatory bodies (4%).

The programme spans three sequential 7-week online modules, each combining live instruction with over 24 hours of on-demand lectures and reading materials. Live sessions are conducted twice a week to foster interaction, while the platform also serves as a resource hub, ensuring flexible and continuous learning. Participants benefit from both theoretical grounding and practical application in key ILS areas such as:

• Catastrophe bond structures and real-world case studies
• Industry Loss Warranties (ILWs)
• Legal frameworks across jurisdictions
• ILS pricing methodologies
• ESG considerations in portfolio allocation
• Role of ILS in reducing protection gaps in low- and middle-income countries

A stand-out feature of the programme is exclusive access to leading industry practitioners. Through our Investor Day, participants hear directly from four senior market professionals who offer insights into the evolving investor landscape. We also host guest speakers from across the value chain, including top-tier legal experts, sovereign risk pool managers, and academic researchers who bring practical, policy, and theoretical perspectives to the classroom.

While historically the ILS space has been dominated by the (re)insurance sector, there has been a noticeable and positive shift. Sovereign governments and public finance entities are increasingly exploring parametric solutions for disaster risk transfer, and we are proud to support that movement through education. Our programme is actively contributing to building the capacity needed to operationalize such solutions at scale.

Despite these advances, challenges remain. The most significant is the need to raise awareness and build understanding among both public and private actors. Are vulnerable regions sufficiently aware of ILS as a risk transfer solution? Are insurers and regulators doing enough to educate stakeholders about the tools at their disposal?

Through the Fundamentals of Insurance-Linked Securities course, we are addressing this gap. We offer an inclusive and globally accessible learning experience that empowers individuals to not only understand ILS, but also to apply that knowledge in practice – whether as investors, sponsors, regulators, or public officials.

By continuing to bridge this critical educational divide, we aim to foster a deeper, more informed, and more resilient global ILS market – one capable of protecting people, assets, and economies from the growing frequency and severity of natural disasters.