In this month’s insurance-linked securities (ILS) blog, Clive O’Connell, partner, Goldberg Segalla, talks about the scope of the ILS market, and whether it is destined to remain a niche offering.
A recent survey conducted by AM Best, disclosed the rather surprising, if not incredible, statistic that only 3 percent of primary insurers had had any involvement with insurance-linked (ILS) products in the past three years. Given all the publicity that has been given to the ubiquitous nature of ILS and its impact on the market, this figure seems remarkably low.
The figure may, however, like all statistics, be a little misleading.
The description, “3 percent of primary insurers”, ignores all reinsurers and, of course, one primary insurer is given the same weight as another when one could be worth many billions of dollars and another mere millions.
ILS, Clive O'Connell, Reinsurance