Opinion

S&P suggested that an “abrupt rethinking” was a more likely outcome than gradual pricing increases – but a third way is possible if ratings agencies set a glidepath to change.

The lower-than-expected losses so far from Ida do not stack up against what is thought to be a $30bn+ cat event.

Recently one of my colleagues argued that it was time for a “bonfire of PMLs”, as the past five years have shown that the industry has seriously underpriced the kind of $10bn-$20bn loss events that have been happening since Harvey, Irma and Maria landed in 2017.

It is not so much the size of the hit, as the regularity of moderate cat events that is worrying risk-takers.

There is no such thing as an average loss year, but investors will still be looking for benchmarks.

It’s been a year of high turnover in general, but the ILS low-cost operating model can become a disadvantage in managing through such disruption.

Across a wide range of different ILS strategies, there are a number of managers that have failed to gain critical mass in the past 5 years.

CPI surged to 4.2% in April, levels not seen since before the Global Financial Crisis.

Initially, negotiations are likely to be led by risk takers but there could be a case to model a future role for service providers.

The Florida reinsurance renewals ran more smoothly, with lower overall rate increases than initially expected.

The latest generation of ILS-backed rated fronting platforms is looking more “ILS-y” due to their ownership structures.

Collaboration could address many of the issues vexing the ILS market and help to even out the pace of its recovery.