ILS Trends: What to Watch


In his first ILS blog, Tom Johansmeyer, AVP – reinsurance services, marketing at ISO/Verisk Insurance Solutions talks sponsors, triggers and pricing pressure.

johansmeyer-thomas-portrait.jpgThere’s more to the catastrophe bond market than the record-breaking results keep getting posted. Yes, the first quarter of 2015 saw $1.5 billion in original issuance, making it the most active first quarter in the history of the catastrophe bond market. But it’s the underlying trends that show how dynamic the sector has really become.

So, let’s take a look at the top trends that made the first quarter interesting for the catastrophe bond market:

1. Experienced sponsors: Of the seven catastrophe bond sponsors in the first quarter, just one was new. The fact that there were so many repeat sponsors suggests that, for many companies, catastrophe bonds have become a consistent and important part of their strategic risk and capital management activities. More first-time sponsors are likely to come in the second quarter, particularly given the increased interest from Florida market cedants over the past two years. But the presence of so many seasoned veterans indicates that this form of capital can be more than an occasional or tactical solution.

ILS, Verisk, PCS, Tom Johansmeyer

Intelligent Insurer