FULL ORIGINAL PUBLICATION HERE
For some year’s now we’ve been saying that insurance-linked securities (ILS) capacity and alternative reinsurance capital is destined to get closer to risk, as structures and technologies advance to allow it to break free from the strictures of the traditional market chain.
So, it’s encouraging to hear that insurance and reinsurance broking giant Aon agrees and feels that the efficiencies and increasingly direct approaches we associate with ILS capital today, are only the start of something much more impactful to come.
At its inception, ILS capacity was seen as an alternative source of peak risk capital, with the depth and liquidity of institutional investors able to absorb the truly enormous tail exposures that insurance and reinsurance market’s face.