The ILS market has become an increasingly important feature in
the risk transfer landscape in recent years, and is growing
increasingly diverse, encompassing not only catastrophe risks but
cyber and other forms of coverage. What it needs now to take it to
the next level is a liquid secondary market. Bermuda:Re+ILS
reports.
There are many things investors look for when deciding where
they should allocate capital. First, they need to believe they will
be paid a fair return for the risk involved. They value investments
that offer diversification—assets that are not correlated
with other things in their portfolios. And they tend to prefer
investing in things that are liquid: it is easier to justify
investing in something when it is also easy to sell it, should you
suddenly need the money for something else.
