ILS market faces natural pause in pipeline

29-03-2019

ILS market faces natural pause in pipeline

iStock.com / 3dmentat2

The insurance-linked securities (ILS) market is facing a possible brief doldrum in 2019, before reviving in the second half of the year, according to Paul Schultz, chief executive of Aon Securities.

The start of the year seemed to see something of a drop in interest in the ILS market, with some fearing that the high levels of losses from the hurricanes and California wildfires of 2017 and 2018 might see a reduction in interest in the ILS market, especially around the January renewal season.

However, as Schultz pointed out, the ILS market is something of a unique entity when it comes to the renewal season. “When you think about the catastrophe bond market, it doesn’t really follow the renewals dates of the traditional product,” he said.

“Although Aon Securities is focused on ILS and not on other collateralised products, our perspective is that the collateralised product renewals were pretty smooth, with no particular execution issues. I think that applies more broadly across all renewals in general, a kind of non-events renewal.”


ILS, Aon Securities, Paul Schultz

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