Main Conference Day 1: Thursday, July 15, 2010
7.30 Coffee & Registration
8.30 Chairman’s Opening Remarks
Morton Lane
President
Lane Financial LLC
8.45 Opening Keynote Address: Dealing With The
Extra-Ordinary
Dr. Erwann Michel-Kerjan is Managing Director of the Risk
Management and Decision Processes Center at the Wharton School.
In 2008, he was elected Chairman of the OECD’s High Level Advisory
Board on Financial Management of Large-Scale Catastrophes,
established recently by the Secretary General of the OECD. He also
serves as a member of the World Economic Forum's Global Agenda
Council on "Innovation and Leadership in Reducing Risks from
Natural Disasters", and is widely regarded as one of the world’s
leading authorities on risk transfer and the financial management of
catastrophes. In 2009, he co-authored At War with the Weather, a
work that brought him international acclaim. In this much
anticipated keynote address, Dr. Michel-Kerjan will address:
- Better Understanding the New Risk Architecture: Welcome to Risk Management 2.0
- Insurance at the crossroads: Considerations on the future of insurance-linked securities and other forms of alternative risk transfer
- Creating value: The World Economic Forum-Wharton initiative on Global Risks
Dr. Erwann Michel-Kerjan
Managing Director, Risk Management and Decision Processes Center
Wharton Business School
9.30 PANEL: Educating Institutional Investors: Strategies
For Conveying The ILS Value Proposition To Non-
Specialist Investment Audiences
Longer term, more conservative investors like pension funds are essential
to growing the market place for insurance-linked securities. Some
commentators have speculated that there is, potentially, a trillion dollars
waiting on the sidelines for viable alternative asset classes, and that ILS is
one of the investment types seriously being considered by major pension
funds, endowments, and other institutional investors. Historically,
however, the market has done an inadequate job of educating pension
funds on the unique value proposition of the asset class, and this will
need to improve if increased interest is going to turn into actual allocation
on a significant scale. In this key discussion, our panelists will focus on:
- Understanding the differences between explaining the asset class to institutional investors and explaining the asset class to hedge funds
- Gaining a deeper understanding of the asset allocation decision making process for pension funds, endowments, and other institutional investors
- The pension plan decision-making unit: Examining the dynamic between investment officers and the board of trustees, and understanding what this means for the investor education process
- Illustrating the ILS value proposition: Avoiding the communication traps involved with explaining a sophisticated, high-complexity asset class
Panelists
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Morton Lane
President
Lane Financial LLC
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David Rae
Senior Analyst, Private Markets
New Zealand Superannuation Fund
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John DeCaro
Founding Principal
Elementum Advisors
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Philippe Trahan
Portfolio Director, Insurance-Linked Securities
Ontario Teachers’ Pension Plan
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Moderator
Ryan Bisch
Senior Investment Associate
Mercer
10.30 Mid-Morning Coffee & Networking Break
Concurrent Sessions Begin: Choose Track A or B
| Track A: Non-Life
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Track B: Life
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11.15 Forecasting Future Issuance Volumes: Sponsor Perspectives On The Desirability Of ILS And Its Relationship With Traditional Reinsurance
What is the relationship between ILS and traditional reinsurance from a sponsoring perspective? How will the natural catastrophes witnessed in the first quarter of 2010 affect the pricing of reinsurance and the pricing of insurance-linked securities? What is the perspective of sponsors on the various collateral solutions being mooted, such as money market funds and triparty repurchase agreements? Specific focus areas in this panel discussion include:
- Comparing ILS with traditional reinsurance from a sponsoring perspective
- Effective strategies for blending ILS and traditional reinsurance, to produce optimal coverage
- Understanding the relationship between the frequency and severity of natural disasters and the pricing of ILS and reinsurance
- Considerations regarding collateral and credit risk
- Sponsor considerations on short-term, medium-term and long-term changes to total cat bond issuance
Moderator
 Robert Quinn
Vice President
Wells Fargo
Panelists
Mark Van Zanden
Business Group Leader, Outwards Reinsurance
Catlin
Kai Morgenstern
Vice President
Renaissance Re
 Alex Krutov
President
Navigation Advisors
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11.15 An Update On The Status Of US Life Settlements Regulation: Is A Consensus Forming On The Best Route Forward?
The regulatory environment for life settlements has – for the last few years - been rapidly evolving, with regulations varying significantly between different states and a number of different models competing for dominance. In this panel, Michael Freedman will ask a number of key regulators in the space: is a consensus forming? What is the best route forward? Key discussion points include:
- Examining the relative popularity of the NAIC and NCOIL regulatory models
- Understanding the relationship between regulators and legislators
- Regulatory attitudes towards STOLI, insurable interest, and the prospects of large-scale SLS securitization
- Forecasting the future role of the federal government in the life settlements space, including possible activity by the SEC
Moderator
Michael Freedman
SVP, Government Affairs
Coventry
Panelists
Commissioner Joe Borg
Securities Commissioner
Alabama Securities Commission
Representative Robert Damron
President
National Conference of Insurance Legislators (NCOIL)
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12.00 The Investors’ Wish-List: Identifying The Most Significant Areas Of Possible Enhancement Within The ILS Asset Class
For investors in insurance-linked securities, there is much to like: the lack of correlation with traditional markets is a major source of attraction, as are the very healthy rates of return that can be expected. There remains significant room for improvement, however, with many investors arguing for greater transparency and more standardized instruments. In this panel we ask a number of key investors in the asset class to comment about what draws them to the asset class but also, more importantly, how they would like it to be enhanced in the future:
- What We Like: Understanding the aspects of the asset class that are most attractive from an investor stand-point
- What We Don’t Like: Examining the features of the asset class most problematic from the perspective of investors
- What Can Be Changed: Re-imagining the possibilities of the asset class
Moderator
Paul Schultz
President, Investment Banking
AON Benfield
Panelists
Michael Stahel
Head of Insurance-Linked Investments
Clariden Leu
Pete Vloedman
CEO
Anchor Risk Advisors
Greg Hagood
Managing Partner
Nephila Capital
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12.00 Evaluating The Progress Towards Large Scale SLS Securitizations: More Than Wishful Thinking?
What are the prospects for securitization of life settlements? Many commentators have been heralding securitization as a sort of “panacea” for the marketplace, a development that would draw in new, more conservative investors like insurance companies and pension funds, and simultaneously boost demand for policies. But we’ve seen precious little activity so far. What more needs to happen? Are life settlements suitable for securitization? What are the risks involved with these types of transaction? Our panelists will focus on:
- Examining the disconnect between the public perception of life settlement securitizations and the more modest reality of actual deals transacted
- Spotlight on the battle between the life settlement and life insurance industry over the demand that SLS securitizations be banned: Is there any possibility of such a demand being successful?
- The ingredients needed for a viable securitization market: transparency, greater comfort with LEs, clearly defined rating agency standards
- Understanding possible political challenges to the development of a SLS securitization market
Moderator
Scott Willkomm
SVP
Coventry
Panelists
Emmanuel Modu
Managing Director, Head of ILS
AM Best & Co
Jack Kelly
Managing Director
ILMA
Chris McGlashan
Citigroup
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12.45 Networking Lunch Sponsored by
2.15 Re-Assessing The Risk-Reward Profile Of Emerging Market Catastrophe Bonds
Historically, most catastrophe bonds have been dominated by the US, Europe, and Japan, with very being issued in emerging markets. The World Bank’s new initiative, however, suggests that this may be about to change, and there is currently a great deal of interest in the prospects for – and risk-reward profiles of – emerging market catastrophe bonds.
Our panelists will explore:
- Examining the historical performance of non-US catastrophe bonds
- Considerations regarding trigger suitability for emerging market catastrophe bonds
- Understanding the diversification benefit achieved through the inclusion of emerging market catastrophe bonds in an investment portfolio
- Rating agency perspectives on emerging market bonds
- A closer look at the feasibility of catastrophe bond issuance in as-yetuntapped markets including Africa, South America, and Asia – and examining the investment opportunities these would represent
Moderator
Dr. Hans-Peter Boller
Co-Founder
Secquaero
Panelists
Christian Bruns
Portfolio Manager
Clariden Leu
Philipp Kusche
Director
Swiss Re Capital Markets
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2.15 Portfolio Construction Techniques: Considerations On The Most Effective Strategies For Sourcing, Managing, And Blending A Portfolio Of Longevity Risks
For investors in life settlements, assembling a portfolio with the right riskreward characteristics is one of the most critical aspects of the entire investment process. It’s also the one area in which most mistakes are made. In this important panel discussion, key experts will guide you through the portfolio construction process, teaching you to how to source clean product, diversify effectively between LEs and impairment types, and ensure that the right servicing processes are put in place to maintain the value of your assets:
- Determining whether to invest synthetically or through the cash market
- Evaluating the importance of sourcing clean collateral, and establishing the clearest indicators that your collateral is clean
- Diversification within the longevity mix: Identifying the most effective combinations of impairment types, LEs, and policy values
- Setting up effective processes to ensure issue-free servicing of longevitybased assets
Moderator
Scott Willkomm
SVP
Coventry
Panelists
David Hough
Director
PBL Capital
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3.00 The Future Of The SPV Administrator: Implications For Sponsors & Investors
The role of the SPV administrator has been coming under increased scrutiny in recent years, particularly following the collapse of Lehman in 2008. In this session, Philippe Trahan from Ontario Teachers will exclusively convene a panel discussion on the future role of the SPV administrator, incorporating items on jurisdictions, regulatory pressures, governance issues and the elimination of conflicts of interest.
- A closer look at the history of the SPV
- SVP administrators and the response to the Lehman debacle
- Considerations on the choice of SPV jurisdiction: Cayman, Bermuda & Ireland
- Governance issues and possible conflicts of interest
- Regulatory issues surrounding the future of the SPV structure
Moderator
Philippe Trahan
Portfolio Director, Insurance-Linked Securities
Ontario Teachers’ Pension Plan
Panelists
Jason Carne
Partner
KPMG Bermuda
Andre Perez
CEO
Horseshoe Group
Elizabath Frederick
HSBC Cayman
Anthony Rettino
Founding Principal and Portfolio Manager
Elementum Advisors
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3.00 European Investment Considerations: Where The Money Is Coming From; How Asset Allocation Decisions Are Made
Interest has been increasing in recent years in European investment capital: specifically, how European investors are evaluating the US life settlements market, where new flows will be coming from, and how allocation decisions will be made. IQPC is honored to bring together a number of European investors to speak candidly about the asset class, including:
- Identifying the sources and types of European investment capital
- Examining the geographical dispersal of European investors throughout Denmark, Norway, the Netherlands, Switzerland, Luxembourg, Germany, France and the UK
- Understanding the role that life settlements play in European asset allocation strategies
- Identifying the major objections of European investors
Moderator
Thomas Laumont
Executive Director
WealthCap GmbH
Panelists
Titus Van Heur
CEO
European Life Settlements Fund
Christian Seidl
Executive Vice President
Life Bond Management GmbH
Mihail Belostennyj
Managing Director
Lux Kapitalmarkt Management AG
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3.45 Afternoon Refreshments & Networking Break
4.30 Interactive Champagne Roundtables
After a jam-packed day of big picture keynotes, panel discussions, case studies, and presentations, ILS Bermuda
gives you the chance to meet and brainstorm with small groups of your peers during our interactive champagne
roundtable discussions. This is a great opportunity to make valuable contacts from your area of interest, and to
deep-dive into the tricky details that you may have missed in the course of the day’s sessions.
Sponsored by
5.30 Welcome Reception Continued…
6.30 End Of Main Conference Day 1