Trading Risk December 2018

Annual cat bond issuance for 2018 has surpassed broker-dealer predictions for a strong post-loss year.

Arcus

January 2018 opened the year of the “great reload” for ILS managers.

ILS funds with life strategies reported substantially higher transaction volumes in 2018, helping to drive growth in assets under management (AuM).

The retro market is likely to tighten at this year’s renewals as investors pause and reconsider their strategies following another year of substantial losses.

Insurers are seeking to claim roughly $10bn through subrogation lawsuits against Pacific Gas and Electric in relation to the 2017 wildfire losses.

Setting up vehicles under the UK’s new ILS legislation in its first year has required huge amounts of time, money and patience.

Projected cat bond losses from the 2017 disasters have increased by just over 10 percent to $997mn.

Trading Risk view: investor fatigue

The Prudential Regulation Authority (PRA) has said it will re-engage with the ILS industry in 2019 to gather feedback on the first year of implementation of the UK’s ILS legislation, with a view to improving its processes.

The use of rated vehicles in the ILS space is likely to become a trend which will shape the market of the future.

How do ILS investors know whether they’re being paid enough for shouldering catastrophe risks?