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We are two months into the New Year and Paul Schultz, chief executive officer of Aon Securities, reports that the ILS market is already seeing the first clues as to how 2016 might go.
So far this year a relatively small number of catastrophe bonds have been introduced into the market and, according to Paul Schultz, chief executive officer of Aon Securities, the pipeline of such products looks rather light for the year as participants assess the state of the market.
He told Intelligent ILS that so far the market was seeing a continuation of the trends that were observed in the second half of 2015, with different pricing points in different markets leading to some interesting outcomes.
The traditional reinsurance market is seeing more aggressive pricing points at the moment and continues to be more attractive to clients.According to Schultz, the traditional reinsurance market is seeing more aggressive pricing points at the moment and continues to be more attractive to clients. As a result, much of the activity in the market so far in 2016, according to Schultz, has been in the form of repeat sponsors who have already been supplying cat bonds to the market and who therefore are very aware of how these products work in the context of their overall reinsurance programmes.
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ILS, catastrophe bonds, traditional reinsurance market, pricing, trends, 2016