The road ahead


The road ahead

Darren Redhead, chief executive officer at Kinesis Capital Management, talks to Intelligent ILS about what the next year could have in store for the ILS market.

Predicting how a market will change in the future is a challenge for anyone involved in re/insurance. Given the number of mergers and acquisitions, as well as other events, over the course of 2015, some people might be a little nervous about getting out their crystal ball and trying to forecast where the road ahead will take us. Darren Redhead, CEO of Kinesis Capital Management, believes further changes in the market will be an evolution.

“Over the next year, in my view, the market will continue to evolve in a similar fashion to that we have seen over the previous 12 to 24 months. What I mean by evolution is third party capital vehicle and fund structures changing slightly, with some of these entities pursuing rated carrier options. Some who were previously collateralised-only participants are also writing risk on a traditional basis, in what I call the ‘promise to pay’ market. “So I continue to see evolution like that, and along the ACE-BlackRock model [which resulted in the creation of ABR Re].”

The past year has also seen a number of new products and other innovations in the ILS market, with the property-catastrophe section of the market experiencing a surge in numbers and, according to Redhead, there is still interest in the market from investors both old and new.

ILS Market, Kinesis Capital Management, Insurance, Reinsurance, Market, Evolution

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