ILS terms & conditions converged with traditional business
Friday, 07 14 2017, Category: Insurance and Reinsurance, Country: World
Insurance-linked securities (ILS) and catastrophe bond investment managers and their end-investors have been working hard to increase their market share in 2017, with pricing becoming increasingly efficient and now reports suggesting that terms and conditions of coverage have largely converged.
This is truly the “convergence” of the capital markets and traditional reinsurance that has so often been discussed and signals a chance for further ILS growth and more challenges for traditional reinsurers.
The ILS market growth trend is shifting to become about more than just a convergence of price terms, the convergence of coverage terms is perhaps more important for the future of the ILS market and reinsurers.