ILS demand fuels structural innovation

In what is clearly a seller’s market, ILS issuers are finding they can dictate terms to their own advantage. The effect has been a burst of innovation including issuance in new currencies and the sale of bonds with unmodelled risks. Louie Woodall reports

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The mania for insurance-linked securities (ILS) shows no sign of abating. Willis Capital Markets & Advisory reports that $4.5 billion of non-life catastrophe (cat) bonds were issued in the second quarter of this year across 17 deals – the highest volume in any three-month period to date. Total outstanding cat bond volumes now hover around $23.06 billion (£14 billion).

The typical format of ILS is evolving rapidly, with the balance of power between investors and cedents tipping towards the latter

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The future of life insurance

As the world constantly evolves and changes, so too does the life insurance industry, which is preparing for a multitude of challenges, particularly in three areas: interest rates, regulatory mandates and technology (software, underwriting tools and…

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