The ILS sector is still growing fast, and the London Market should be at the forefront of its development, but there are problems to overcome says Clive O’Connell of McCarthy Denning.
The insurance-linked securities (ILS) market has grown enormously over the past few years and appears set to maintain its level of growth into the future. The appetite of pension fund investors, and the attractiveness of ILS products to insurers and those who regulate them, almost certainly ensure the further development of the market.
One question that is now being raised is the role the London Market can play in this development.
London is the centre of both the world’s capital markets and the global reinsurance market. As such, it needs to play a significant role in ILS. The question is what precisely that role will be.
Clive O'Connell, McCarthy Denning, ILS, blog, London, Europe