Traver Alexander, public policy and regulatory affairs representative at the Association of Bermuda Insurers and Reinsurers (ABIR), explains the trends in the Bermuda ILS region and peril exposures in recent times.
Over the last approximately three years (from the second half of 2012 through the first quarter of 2015) only two Bermuda-issued insurance-linked securities (ILS) can be identified as covering risk unrelated to natural catastrophes, according to the Bermuda Monetary Authority (BMA). The coverage of property catastrophe during the referenced period amounts to 76 of 78 deals and $14,791 million of an overall issued total of $15,032 million.
The two exceptions were for lottery winnings and life health. Since the Bermuda ILS market is still markedly dominated by property catastrophe coverage, this article briefly explores some recent trends in Bermuda ILS region and peril exposures.
Figure 1 displays aggregate ILS issued volume by region-peril since the second half of 2012. Not surprisingly, the combined figures show that North American perils (hurricane, earthquake and multi-peril) represent 75 percent of all issuances ($11,081 million), with Asian earthquake and multi-region/multi-peril consisting the majority of the remaining 25 percent volume ($3,710 million).
ILS, Bermuda, ABIR