liability ILS

The catastrophe bond and ILS market looks set to see a very rare casualty cat bond type transaction as European insurance giant Assicurazioni Generali seeks a €180m or larger source of motor third-party liability reinsurance protection through a Horse Capital I DAC securitisation.

The launch of Oortfolio™, a liability insurance risk modeling platform from Praedicat, could stimulate innovation in liability insurance risk transfer, such as attracting new capital by enabling it to better quantify liability exposures and even liability catastrophe bonds.

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.