ILS: Down the road towards securing ratings

23-07-2018

ILS: Down the road towards securing ratings

iStock/ StevanZZ

Some of the bigger ILS funds are well down the road towards securing ratings—a move that will see them complete their journey from nimble newcomers to occupying a central ground and competing with traditional players on their own turf. This could be a game-changer for the market, as Intelligent Insurer reports.

Even the most cocksure rebellious teenagers can grow up to become respected members of the community; even the most rabblerousing activists often join mainstream politics and become part of the establishment; even the most innovative entrepreneurs can end up running companies that bear little resemblance to the quirky, alternative startups that once defined and led to their success.

Pick your metaphor as you will—the concept of the upstart becoming the usurper and then the establishment is a common transition that can be found in many aspects of life and business.

“The real question—the elephant in the room—is simply what cedants want, and how many want rated paper.” Reinsurance has seen many versions of this evolution. Bermuda has witnessed many waves of startup reinsurers—all lean, nimble and offering an ‘alternative’ solution when first launched. They are now the establishment. The same can be seen in Lloyd’s of London, and in the managing general agent and broking worlds.


ILS, Funds, Alternative risk transfer, Reinsurance, Collateralised reinsurance, London, Bermuda, Global

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