Analysis

Some firms have fared better than others in the competition to raise funds during the year.

Most ILS firms are marking the Ian loss as a $50bn+ event, although there are exceptions.

Transparency and alignment of interests are the keys to expanding casualty ILS.

The Gulf Coast state is keen to distance itself from Florida’s insurance woes but is resistant to some underlying changes.

Early reporters emphasised an ongoing demand for structural change.

For larger top-end ILW triggers, cedants may have to be pragmatic on rolling over capital.

The outcomes were better than the Swiss Re global cat bond index decline after the major hurricane.

Amid a wide range of industry loss estimates, it is clear that ILS trapped capital will be a major issue for 2023 with back-of-the-envelope calculations suggesting at least double-digit billions held.

Research by sister title Inside P&C shows the top three homeowners carrier exposures by county for forecast highest impact areas.

Cat 4 Hurricane Charley made landfall on Florida’s west coast in 2004, while Tarpon Springs (1921) was the last major storm to hit Tampa.

Reinsurers are better positioned to face this storm from a financial point of view – to Florida state’s detriment – but how capital providers will react to a loss is the wildcard.

With investor fundraising prospects challenged due to macro factors, there are questions over how much US demand growth the ILS market can absorb.