Q1 ILS issuance saw a rise in deal complexity
Tuesday, 05 03 2016, Category: Insurance and Reinsurance, Country: World
The increased complexity and variety of structures utilised in the insurance-linked securities (ILS) space during Q1 represents and market shift towards less standardization, as investors seek greater transactional diversification, according to Munich Re.
The record-breaking volume of catastrophe bond and ILS issuance seen in the first-quarter of 2016, saw an increased use of more complex structures that included greater utilisation of aggregate coverage.
“This development is proof of an overall shift in the market towards more complex coverage mechanisms and less standardization, in line with investors’ desire for more diversification and a higher variety in structures,” said Munich Re in its Q1 2016 ILS Market Update.