ILS market sees regional differences ahead

21-01-2016

ILS market sees regional differences ahead

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Paul Schultz, chief executive officer at Aon Securities, looks at the regional opportunities that exist for the ILS market and claims that the US is still the main leader when it comes to ILS business as it heads into 2016.

“The US has maintained a relatively strong performance, especially when we compare it to other regions,” he told Intelligent ILS. “The US still has the highest ILS margin available to investors in terms of asset class, and as the greatest amount of capacity in the market tends to be available for the higher-margin business, the US tends to take centre stage in overall ILS leadership.

The US still has the highest ILS margin available to investors in terms of asset class, and as the greatest amount of capacity in the market tends to be available for the higher-margin business, the US tends to take centre stage in overall ILS leadership. “I anticipate that we’ll continue to see a reasonably good level of sponsorship of [ILS] transactions, and the driver of whether 2016 will be a positive year or not will be based on a number of issues – such as attachment points, which could be lower. When you have lower attachment points, the risk profile becomes greater, resulting in potentially higher coupons available to investors.”

Looking at the second largest region for ILS business, Schultz told Intelligent ILS that he points to Japan as being particularly interesting at the moment, with a number of Japanese clients looking at some transactions and renewals, along with some expired transactions that might or might not be renewed.


ILS, USA, Asia, Japan

Intelligent Insurer