Opinion

The cost of maintaining a team to service institutional investors does not always weigh favourably versus bringing in ILS capital.

Prior-year cat loss years that are finally shaking out drove fee benefits in Q3.

Fermat’s John Seo said the industry can “see the wall of money coming in, but it’s coming in slowly”.

A number of players suggested that the cost components of first-party claims were up between 30%-50% on that seen during Ransomware Wave One.

A challenge facing the industry in the years to come is the question of how can it move through a rotation of its investor base to capture the growth opportunities that have arisen.

The obvious question is where is the capital behind the letters of credit that were being pledged on its transactions.

With fundraising still difficult outside the liquid ILS segment, managers are looking for ways to shore up their economic proposition.

From seeing ILS as a fleeting competitor to a complement to traditional reinsurance, Denis Kessler’s descriptions of the alternative market were always colourful.

Removing any competitor is a positive for ILS peers in a competitive time for fundraising, but it is not clear how much of a boost this will give RenRe.

Capital has begun to flow again after a challenging time for ILS fundraising in 2022 – but there is a clear shift underway.

There are enough drivers supporting the trend for cat bond segment growth that ILS managers are likely to be plugging this business heavily in the short term, even if it is less attractive in fee yield.

The new higher-rate world brings the threat of some investors staying in a risk-off mentality.