Investor-driven transparency takes centre stage in ILS

At Convergence 2025, taking place 13-15 October, the conversation among leading ILS managers and investors highlighted a simple but profound truth: in the maturing ILS market, transparency is no longer optional — it has become the currency of trust.

As panellists explored investor appetite, portfolio construction and evolving risk structures during Session 2: When Markets Shake, ILS Holds, one theme emerged clearly: without visibility, capital will hesitate.

Joe Tolen (pictured second from right), senior investment director, credit investment group at Cambridge Associates, observed: “I think a bit more hand-holding in education around ILS where we’re at in the cycle… this element wasn’t quite there five years ago, and I think it’s come a really long way.” The emphasis was not just on teaching investors what the asset class entails, but on offering detailed insights into cycle management, pricing and market size.

Dan Conklin (pictured middle), alternative capital partners Americas from Swiss Re, expanded on the point, noting that transparency aligns investors and risk carriers: “Investors are increasingly looking for transparency, and if it’s your business, you’re able to provide deeper levels of transparency than perhaps if you’re an independent manager searching the market for different types of risks.” Transparency enables investors to update boards confidently, while also fostering trust over longer-duration commitments.

Panellists also highlighted the growing demand for data and reporting standards. Investors now want clarity on how contracts are priced, historical default rates and expected returns. “Many of our clients want to understand what they are exposed to. They don’t want surprises in their portfolio. Transparency is definitely key in the decision-making,” Tolen noted.

This transparency push is reshaping investor behaviour. Vincent Mutolo (pictured left), senior managing director, investment banking at CAC Specialty explained that long-tail risk and casualty ILS are now attracting investors willing to commit for three to five years — a significant shift from the early days when 12-month liquidity dominated. The deeper insight into risk exposure, combined with the ability to see track records against actual outcomes, is enabling a new generation of informed allocations.

Ultimately, the message was clear: in an era of abundant capital and complex risk structures, transparency and education are inseparable. Managers who embrace it can secure trust, attract capital and grow alongside a more sophisticated investor base.

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