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PGGM urges investors to consider insurance-linked securities for diversification
PGGM’s Eveline Takken-Somers said more institutional capital would come if investors trusted ILS returns across the full cycle, backed by transparent exposures and underwriting discipline.
Institutional investors that have not yet allocated to insurance-linked securities should consider doing so for diversification and a risk-return profile, according to Eveline Takken-Somers, Head of Insurance Linked Investments at PGGM, speaking during a webinar briefing presented by broker Aon.
Takken-Somers said the main draw for ILS investors is diversification, with additional appeal tied to standalone risk-return characteristics. She argued that institutional commitment would increase if investors trust the asset class throughout the full cycle, including “attractive returns” plus pricing and underwriting discipline in both good and bad years, Artemis reported.
She added that transparency is key to building that trust, saying investors need to understand exposures, modeling, and deal terms, especially because many investors must bring allocations to their boards for approval. Takken-Somers also noted that reinsurance can unsettle trustees who are unfamiliar with the market, and said stronger alignment, meaningful risk retention, and clear coverage can help reduce surprises.
PGGM also pointed to simplifying reinsurance language as another step that could help investors better understand how the market works. Takken-Somers’ comments were made as the webinar examined how third-party capital can support growth, resilience, and tailored risk transfer across reinsurance and ILS markets.