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Insurance Linked Securities market update

Recurso electrónico / Electronic resource
Coleção: Documentos eletrônicos
Título: Insurance Linked Securities market update / Swiss Re
Publicação: Zurich : Swiss Re, 2019Descrição física: 32 p.Notas: Sumario: What a difference one year makes in the Insurance-Linked Securities (ILS) market. The HIM (Harvey, Irma & Maria) events of 2017 and the loss creep associated with past events have finally impacted the ILS new-issue market as capital was trapped and significant amounts of potential fresh capital remained on the sidelines. This is in stark contrast to the previous year when large sums of capital were raised to take advantage of potential rate-hardening that wasnt to be. Additional loss events in 2018 and 2019 added onto the HIM 2017 losses to impair more transactions in the market. Such loss events locked up a disproportionate amount of collateral, leading to less
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.
Materia / lugar / evento: Instrumentos financieros Seguros vinculados a valores Inversiones financieras Pérdidas Catástrofes Perspectivas económicas Perspectivas del seguro Mercado de reaseguros Mercado de seguros Otros autores: Swiss Re
Outras classificações: 212