Insurance Linked Securities

Hank Watkins offers his thoughts on the lack of property cat coverage and the knock-on effect on policyholders.

Latin America’s insurance market is exposed to an impressive range of natural catastrophes. To the traditional perils of earthquakes in the Andes and Mexico and hurricanes in Central America and the Caribbean, new(ish) threats have gained weight of late such of floods across the region and droughts in the Southern Cone.

Kathleen Reardon offers her thoughts on the ILS space today, and the relative competitiveness of Hiscox's ILS model.

The CEO of Artex offers her perspective on how reinsurers are earning their return on capital today, and how inflation is impacting ILS.

Recent climate events have dented Brazil’s reputation as a non-catastrophic market, a perception that is set to have an impact on the country’s insurance market.

Whether from primary or secondary perils, losses from natural disasters have now exceeded cat budgets for some years in a row. The frequency and severity of events have exceeded our expectations, usually based on internal and vendor cat models. Efforts have been made using multiple granular economic and risk data to better understand what and where the insured values are (including density, inflation and business interruption), but we are forced to recognize the changing nature of events we face.

The continued growth of the cyber insurance market, increasing premiums and the potential for risk diversification is causing fund managers to consider the prospect of cyber risk as an asset class.

Though underwriting gains are likely to offset some losses, says AM Best

New investors are now looking at high frequency, low severity life and P&C insurance assets  to earn additional spread on their existing assets.