The spate of heavy losses in 2017 and 2018, compounded by ‘loss creep’ as some funds struggled to post accurate loss estimates, seems to have made ILS investors pause for thought, with many being much more circumspect as to where to place their money. Intelligent Insurer investigates.
“People also need to remember that just because a risk seeks cover it does not automatically mean it is suitable for the ILS market.” Jutta Kath, Secquaero Advisors
2018 was a year of disasters, from hurricanes to typhoons and then wildfires, with the latter making the headlines as parts of Northern California went up in flames.
With the insured loss estimates continuing to climb, and with liability issues from the fires leading to leading US power company PG&E going to into bankruptcy protection, it’s been a winter of bad news so far for re/insurers.
ILS, catastrophe, PG&E, reinsurance, John Warwick, ILS Capital Management, Jutta Kath, Secquaero, Q1, Lloyd's Lloyd's Market, North America