capital to redeploy into the market. This was exacerbated by the adverse loss development associated with Hurricane Irma and Typhoon Jebi, increasing both notional impairments and trapped collateral. Furthermore, due to the frequency and nature of the events, in addition to the loss creep, end investors did not rush back into the market like in 2018. They preferred to wait and see how the market performed to determine whether the market displayed the right risk-return characteristics and to assess the performance of the investment funds and/or sidecars. This had a knock-on effect of an increased level of qualitative diligence on the risk-taking side and a widening of spreads for perils like wildfire and aggregate triggers
Insurance Linked Securities market update
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capital to redeploy into the market. This was exacerbated by the adverse loss development associated with Hurricane Irma and Typhoon Jebi, increasing both notional impairments and trapped collateral. Furthermore, due to the frequency and nature of the events, in addition to the loss creep, end investors did not rush back into the market like in 2018. They preferred to wait and see how the market performed to determine whether the market displayed the right risk-return characteristics and to assess the performance of the investment funds and/or sidecars. This had a knock-on effect of an increased level of qualitative diligence on the risk-taking side and a widening of spreads for perils like wildfire and aggregate triggers