Casualty insurance-linked securities news

Pricing in the casualty reinsurance space is expected to increasingly come under pressure owing to the presence of alternative capital, but it’s impact is unlikely to be as influential as seen in the property cat space, say analysts at Morgan Stanley.

A catalyst for the growth of insurance-linked securities (ILS) in the property catastrophe reinsurance sector is the capabilities of third-party modelling, but a lack of predictive modelling within the casualty arena mitigates entry and impact of a similar scale, according to industry experts.

A new report published by the Lloyd’s of London insurance and reinsurance market concludes that by underpinning liability catastrophe models with big data techniques, opportunities could be found for the ILS market to get more deeply into casualty risks.

The presence of alternative capital in the global reinsurance market has, due to various factors, largely focused on property catastrophe business lines to date, but analysts’ predictions signal greater expansion of ILS into casualty risks ahead.

For casualty risks to become a meaningful part of the insurance-linked securities (ILS) and catastrophe bond market, transactions need to be structured in such a way that investors can see a clear exit point, according to Chris Parry of Aon Securities Limited.

An innovative new risk modelling tool has launched this morning which could help to increase transparency and understanding when modelling casualty risks for insurers, reinsurers and insurance-linked securities (ILS).

Yesterday we wrote about the launch of the ISO Casualty IndexTM by the Insurance Services Office. This could be an important piece of the evolution of the catastrophe bond and insurance-linked securities markets that helps the markets broaden their scope to include casualty lines of insurance business.

The Insurance Services Office (ISO), a member of the Verisk group of companies and the provider of the PCS Catastrophe Loss Index which is used in many catastrophe bond deals, has today launched a new index product aiming to target the casualty insurance market. ISO Casualty IndexTM is a new service which will provide loss […]