ILS: Demystifying Quota Shares

Graham Diack, Portfolio Manager at Swiss Re Insurance-Linked Strategies (Swiss Re ILS), and Dr Rom Aviv, Head of Insurance-Linked Securities (ILS) at GAM Investments, discuss quota share arrangements as a traditional reinsurance structure in which investors participate in a (re)insurer’s portfolio, sharing both premiums and losses.

The session explains how quota shares work in practice and highlights key considerations for investors, including:

•         Why strong infrastructure is important for sourcing, underwriting and portfolio management
•         The value of local market insight combined with global diversification
•         How inherited leverage can enhance capital efficiency
•         Alignment-of-interest structures that support long-term partnerships
•         The importance of advanced analytics and modelling capabilities