Key facts
- Hedge funds are increasing their focus on natural catastrophe risk.
- There is a growing demand for specialized talent like ILS modelers.
- The pool of qualified ILS modelers is reportedly small.
Hedge funds are actively expanding their operations and teams dedicated to capitalizing on risks associated with natural catastrophes. This strategic shift involves building out specialized desks focused on insurance-linked securities (ILS). The increasing demand for talent in this niche area is evident, as illustrated by a headhunter's search for an ILS modeler for a major U.S. hedge fund. The scarcity of qualified candidates for such roles underscores the growing, yet still developing, nature of this market segment within the hedge fund industry.