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Alternative ILS capital may expand to cover data center catastrophe risk
LGT ILS Partners’ Michael Stahel said data centers are becoming one of the largest new sources of insured property value in the US as AI and cloud buildouts accelerate demand for catastrophe capacity.
AI and cloud infrastructure expansion is increasing demand for catastrophe capacity in the re/insurance market, according to commentary from Michael Stahel of LGT ILS Partners, speaking to Artemis.
Stahel said data centers are becoming one of the largest new sources of insured property value in the US, with rapid AI and cloud investment driving demand for insurance and reinsurance coverage.
He also discussed whether data infrastructure could become a meaningful allocation opportunity for ILS investors, and said LGT ILS Partners has established a dedicated task force to assess this emerging line of business, as insurers and reinsurers face new coverage needs tied to hyperscale campus expansion.