Greg Wojciechowski, chief executive, Bermuda Stock Exchange
27 March 2020 Alternative Risk Transfer
ILS and the effects of the COVID-19 crisis
What impact do you expect the COVID-19 outbreak to have on ILS?
The general cat bond market is not seeing a direct impact from the COVID-19 pandemic as the predominant underlying risks are natural catastrophe perils resulting from losses to property such as earthquakes, hurricanes and wildfires.
There has been an indirect knock-on effect of forced selling to free up cash in other parts of sellers’ portfolios which has mostly reported to be multi-strategy funds, but perhaps also more liquid cat bond-only insurance-linked securities (ILS) managers.
