ILW news

News and articles about ILW contracts. ILW’s are typically a fully-collateralised reinsurance transaction, better known as an industry loss warranty (ILW).

ILW’s provide mainly retrocessional reinsurance protection, on an industry loss trigger basis and can be structured as a derivative or swap, or a traditional reinsurance contract.

ILW’s are popular hedging tools for global reinsurance firms, who can hedge their broad industry exposure to major catastrophe losses using a contract that pays out based on the industry-wide loss experience from an event.


Florida ILW price indications up as much as 50% year-on-year

With the Florida reinsurance renewals fast approaching, it's interesting to learn that indicative pricing for industry-loss warranty (ILW) protection covering hurricanes affecting the state is up significantly year-on-year, but actual market pricing may be flat or even down. Please read our update at the foot of this article. The market for read the full article →

ILW market attention shifting to mid-year hedges and Florida: Willis Re

The industry loss warranty (ILW) market saw pricing spike to levels aligned with the pre-mid year 2020 market, as attention shifts to arranging hedges and covering Florida exposures, broker Willis Re has said. The industry loss warranty (ILW) market, which is predominantly a source of capital market backed retrocessional reinsurance and read the full article →

Strong ILW demand at January renewal, more expected in June: CNR

Investment adviser City National Rochdale (CNR) explained that strong demand was seen for industry-loss warranty (ILW) capacity at the January 2021 reinsurance renewals and with capacity for this market still seen as more limited, more of the same is expected for June. The adviser offers the City National Rochdale Select Strategies read the full article →

Lockton Re hires ex-CATCo CUO Simon Moore

Lockton Re, the reinsurance business of the privately held independent global broking firm, has hired Simon Moore, the former Chief Underwriting Officer of CATCo, as a Senior Broker within its Non-Marine Retrocession & Property Specialty team in London. Moore had joined collateralized retrocessional reinsurance investment fund manager CATCo back in 2015, read the full article →

In uncertain times, industry loss triggers make sense: Johansmeyer

In light of current market conditions and a heightened awareness about the hidden costs of UNL or indemnity business, it makes sense to leverage the industry loss index product, according to Tom Johansmeyer, Head of PCS. Industry loss metrics provided by PCS are extremely valuable for the industry and increasingly utilised read the full article →

Lockton Re hires Aon ILW practice head Parcell in Bermuda

Lockton Re, the reinsurance business of the privately held independent global broking firm, has announced a key hire in Bermuda, taking Thomas Parcell from Aon as its new Chief Broking Officer on the island. Lockton Re has been building out its Bermuda platform of late and Parcell marks a key move read the full article →

Stonybrook automates ILW price sheets with service

Stonybrook Capital, a specialist strategic advisory and investment banking firm focused exclusively on the insurance and reinsurance industry, has developed a service to make pricing of industry loss warranty (ILW) contracts more readily available and transparent. We’ve highlighted issues surrounding the pricing of industry-loss warranties (ILW’s) and broker’s pricing sheets before, read the full article →

We’re at the start of an industry-loss trigger adoption wave: Johansmeyer at ILS NYC 2021

It’s just a matter of time before the use of industry loss triggers for risk transfer transactions broadens and is more widely used, which in turn will unlock more diversifying risk into certain sub-sectors of the insurance-linked securities (ILS) space, according to Tom Johansmeyer, Head of PCS. The fifth annual Artemis read the full article →

Akinova gets first Bermuda Insurance Marketplace Provider licence

Akinova, a company that has created a platform for the transfer and trading of insurance and reinsurance risks, has become the first to receive an Insurance Marketplace Provider licence in Bermuda. Akinova had previously become the first company to be authorised for an insurance regulatory sandbox licence from the Bermuda Monetary read the full article →

What the US Capitol riots mean for re/insurance and ILS interests: Interview

We spoke with Tom Johansmeyer, Head of PCS, today, to discuss the rioting and civil disturbance seen at the US Capitol buildings on January 6th 2021. While the rioting and disturbances seen yesterday won't have any significant implications in terms of losses for the insurance and reinsurance industry, there is a read the full article →