The robust nature of insurance investments, October 2023

Nick Martin, co-manager of Polar Capital Global Insurance, delves into the intersection of economics, investments, and the insurance sector. Nick explains how the non-life property casualty insurance sector offers a unique and robust defensive characteristic, even during challenging economic times. He highlights the insulation of the insurance sector from broader macroeconomic shifts and elaborates on the sector's ability to benefit from rising interest rates and inflation, thereby transforming the earnings potential of insurance companies.

Nick also offers a clear tutorial on the roles of primary insurers and reinsurers, shedding light on how these entities manage catastrophic risks and work together to cover losses. He touches on the changing dynamics of risk distribution, particularly in the face of climate change and its impact on catastrophe losses.