Industry loss warranties news

News and articles about industry loss warranties (ILW). Industry loss warranties (ILW’s) are typically a fully-collateralised reinsurance transaction, often known as simply an ILW.

Industry loss warranties provide mainly retrocessional reinsurance protection, on an industry-loss trigger basis and can be structured as a derivative or swap, or a traditional reinsurance arrangement.

Industry loss warranty contracts (ILW’s) are popular hedging tools for global reinsurance firms, enabling them to 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 →

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 →

City National Rochdale ILW fund lifts assets by 13%

City National Rochdale’s largely industry loss warranty (ILW) focused mutual insurance-linked securities (ILS) investment fund increased its total net assets under management to $147.8 million by the end of October 2020, an increase of 13% in the quarter. The City National Rochdale Select Strategies (CNRLX) fund is an interval style mutual read the full article →

Quota share & ILW use rises in Bermuda, ILS use flat

The latest catastrophe risk stress testing analysis by the Bermuda Monetary Authority (BMA), of its property and casualty insurance and reinsurance market, shows up some interesting trends in the use of specific types of hedging, reinsurance and retrocession arrangements. Having surveyed its marketplace based on 2019 data, the results show that read the full article →

Munich Re lifts Jebi industry loss to $13bn, some ILW’s potentially in play

Global reinsurance firm Munich Re has lifted its estimate for insurance industry losses from 2018's Japanese typhoon Jebi to $13 billion, which we understand could put a handful of still-exposed industry loss trigger contracts such as ILW's in play. Munich Re provides estimates of insurance market losses for major catastrophe events read the full article →

Turker Re launches Capital Solutions unit & Turkey quake ILW product

Turker Re, a Lloyd's broker with a significant insurance and reinsurance broking footprint in the Turkish marketplace and surrounding region, has launched a new product offering of a Turkey earthquake industry loss warranty (ILW) as the first under a new Capital Solutions unit. The broker hopes to create a new market read the full article →