Analysis

For larger top-end ILW triggers, cedants may have to be pragmatic on rolling over capital.

The outcomes were better than the Swiss Re global cat bond index decline after the major hurricane.

Amid a wide range of industry loss estimates, it is clear that ILS trapped capital will be a major issue for 2023 with back-of-the-envelope calculations suggesting at least double-digit billions held.

Research by sister title Inside P&C shows the top three homeowners carrier exposures by county for forecast highest impact areas.

Cat 4 Hurricane Charley made landfall on Florida’s west coast in 2004, while Tarpon Springs (1921) was the last major storm to hit Tampa.

Reinsurers are better positioned to face this storm from a financial point of view – to Florida state’s detriment – but how capital providers will react to a loss is the wildcard.

With investor fundraising prospects challenged due to macro factors, there are questions over how much US demand growth the ILS market can absorb.

How much capacity is available to meet rising cat reinsurance demands was a key theme throughout this year’s Rendez-Vous.

A challenged property cat market is expected to open up more opportunities for ILS growth – but the key question surrounds whether and how fast the market can attract more capital to take advantage of this dynamic.

Some might see the ILS sector as more institutionalised compared to personality-driven hedge funds, but there is little doubt that the original generation of ILS leaders will be hard to replace.

The firm hopes to offer investors legacy and live risk in the future.

Industry experts told Trading Risk why underwriting guidelines and trust in counterparty management teams are essential.