A new pilot designed to enhance the way insurance-linked securities investments are invested and managed has been announced by Schroders Capital.
The circa-$94 billion private markets business of Schroders Group collaborated with global reinsurer Hanover Re. on the proof of concept, designed to show how ILS funds may invest via a digital ecosystem in the future.
Tokenization and trading of reinsurance contracts on a public blockchain platform using smart contracts enables the automation of several time consuming aspects of the investments, streamlining processes with, for example, automated subscriptions and reduced settlement times.
It does not negate the importance of oversight from investment professionals but does have potential to improve customer experience with investors being able to hold their tokens alongside other digital assets in their own wallets.
Schroders Capital’s co-head of Private Debt and Credit Alternatives, Stephan Ruoff, noted that there are other benefits too.
“The success of this pilot showcases the immense potential for enhancing transparency, streamlining investment processes and improving client experience in the reinsurance sector,” he said. “It paves the way for a more interconnected and efficient digital ecosystem, and we are looking forward to exploring the broader application to wider investment scenarios and clients."
The firm has seen increased client demand for ILS investments, managing over $5 billion for clients according to its announcement in March 2024.
“With investor concerns over inflation and having to navigate higher for longer rates, portfolio diversification is key. Investors are clearly seeing the benefits of adding less-correlated assets such as ILS in a portfolio context,” Ruoff said at the time. “Fundamental indicators suggest a continuation of attractive conditions for ILS investors. Yields as well as underlying risk premiums remain very attractive as demand for insurance risk transfer remains high.”
Chasing productivity is one thing, but when you're cutting corners, missing details, and making mistakes, it's time to take a step back.
It is not clear how many employees will be affected, but none of the private partnership’s 20,000 financial advisors will see their jobs at risk.
The historic summer sitting saw a roughly two-thirds pass rate, with most CFP hopefuls falling in the under-40 age group.
"The greed and deception of this Ponzi scheme has resulted in the same way they have throughout history," said Daniel Brubaker, U.S. Postal Inspection Service inspector in charge.
Elsewhere, an advisor formerly with a Commonwealth affiliate firm is launching her own independent practice with an Osaic OSJ.
Stan Gregor, Chairman & CEO of Summit Financial Holdings, explores how RIAs can meet growing demand for family office-style services among mass affluent clients through tax-first planning, technology, and collaboration—positioning firms for long-term success
Chris Vizzi, Co-Founder & Partner of South Coast Investment Advisors, LLC, shares how 2025 estate tax changes—$13.99M per person—offer more than tax savings. Learn how to pass on purpose, values, and vision to unite generations and give wealth lasting meaning
