Japan dominates Asia-Pac ILS issuance


Japan dominates Asia-Pac ILS issuance

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With SIRC now over and as the (re)insurance industry starts to wind down a little towards the 1/1 renewals, Intelligent ILS asked Paul Schultz, chief executive officer at Aon Securities, for his thoughts on the state of the ILS market in Asia at the moment.

“I do think that we are going to continue to see more issuance out of Japan – the country will lead Asia in terms of issuance and we’d certainly expect to see a good level of that issuance take place over the next twelve months,” Schultz told Intelligent ILS.

According to Schultz the major catastrophe bond – related perils that the Japanese market is most concerned about are earthquakes and typhoons, both of which have impacted Japan in recent years. The Tōhoku earthquake and subsequent tsunami of 2011 caused billions of pounds of damage over the North-East region of Japan region, and led to the Fukushima nuclear emergency, which is still impacting the area.

“We’re really not seeing another major set of perils that are going to come from Asia of that nature, just because in the overall quantum of total reinsurance purchases it’s just not that great compared to other peak perils around the world. So there isn’t as much demand for capacity, or there’s not as much benefit in terms of price and diversification as you would get on some of the larger perils.

ILS, Japan, Asia-Pacific, Paul Schultz

Intelligent Insurer