Bermuda remains the world-leader in ILS and as the sector
becomes ever-more entwined with other forms of risk transfer, the
Island continues to innovate. That was just one takeaway from a
roundtable discussion of experts hosted by EY Bermuda.
Q1: HOW WOULD YOU CHARACTERISE THE ILS MARKETS AT PRESENT?
Craig Redcliffe: I'd say we are in a
hard market. We've seen some substantial price increases.
We've seen a number of players pull back in terms of capacity
or reduce their exposure to the property catastrophe reinsurance
sector. As a result of that, we have seen less capacity available
to deploy at the mid-year renewals. That's putting pressure
on the pricing. In many cases. Insurance-linked securities (ILS)
managers have been able to negotiate not only significant price
increases but also on terms such as moving further up into the
reinsurance tower and negotiate higher attachment points.
