In Episode 3 of Market Minute, Scott Cobon, managing director of Insurance Management Services, shares insights into the path to a $200 billion insurance linked securities (ILS) market, and what we're watching right now.
Themes include:
- Aggregate style covers are on the rise as investors continue to shun volatility.
- Growth to a $200 billion ILS market by 2032 will require several key factors, including increased demand for insurer protection, better weather risk adjusted modeling, new opportunities outside of North America, and growth in cyber and flood insurance.
- Investors are starting to diversify beyond purely natural catastrophe risk, with new capital flowing into cat bonds, and collateralized casualty sidecars gaining popularity.
