Importance of ILS to capitalise post-event
Wednesday, 03 30 2016, Category: Insurance and Reinsurance, Country: World
Insurance-linked securities (ILS) investors need to be active with capital deployed in the ILS market both pre and post-event, so they can support cedants capacity needs and capitalise on potential opportunities, according to Dr. Robert Herde of Munich Re.
Typically, after a large loss event, insurance, reinsurance, and ILS markets reorganise and adjust to a certain degree, usually resulting in a rise in rates and an inflow of new investors, and the exit of others.
However, owing to the global re/insurance landscape maintaining a supply/demand imbalance that is driven by an influx of capacity from both traditional and alternative sources, a post-event market has the potential to look very different from years gone by.