Insurance Linked Securities Interviews

The recent global IT systems outage caused by the CrowdStrike event can serve to build more confidence in cyber catastrophe bonds, as some of the biggest questions posed about this new segment of insurance-linked securities (ILS) were about how losses from a major cyber event would manifest, Jonathan Hatzor, CEO of Parametrix told us.

Despite somewhat of an easing at the mid-year reinsurance renewals, insurance-linked securities (ILS) activity has been robust so far in 2024, and knowing what the rest of the year looks like right now, catastrophe bond issuance is on pace to set a new record, according to Lara Mowery, Head of Distribution, Guy Carpenter.

With numerous forecasters warning of a very active Atlantic hurricane season this year, some insurance-linked securities (ILS) markets eased off somewhat at the June 1st and July 1st, 2024, reinsurance renewals, which led to a little bit of a squeeze in places like Florida, according to James Vickers, Chairman, Gallagher Re International.

With the Atlantic hurricane season officially underway as of June 1st and forecasts calling for a particularly active year, insurance-linked securities investment manager Twelve Capital believes investors with a long-term view are well-compensated for shouldering this exposure.

After a successful foray into the catastrophe bond market in 2023 with the $100 million Stabilitas Re Ltd. (Series 2023-1) transaction, Bermudian reinsurer Conduit Re continues to explore the space, according to CEO Trevor Carvey.

The maturity and importance of the catastrophe bond product has seen the asset class become more than just another option and develop into a strategic, tactical play for both investors and issuers, according to experts at Acrisure Re.

Industry loss warranties (ILWs) remain a useful and well-established instrument within the capital management toolbox of risk carriers, but do have their drawbacks, some of which can be mitigated or removed entirely by a parametric structure, according to Skyline Partners.

Reinsurance broker Acrisure Re’s entry into the catastrophe bond space was driven by strong client demand, and as the offering continues to gain traction less than a year after inception, there’s anticipation that new, different sponsors will enter the market.

Investor and issuer interest in the catastrophe bond product remains strong amid healthy market dynamics, and the expectation is that 2024 will be another record year for the space, according to Vincent Prabis, Managing Principal, ILS at Hiscox Re & ILS.

The arrival of the world’s first cloud outage catastrophe bond was viewed very positively, and provides investors with a new avenue into the cyber insurance-linked securities (ILS) space, according to Henning Ludolphs, Managing Director Retrocession and Capital Markets at Hannover Re.