What is An Industry Loss Warranty (ILW)? Industry Loss Warranties are out-and-out binary options although the jargon of the insurance market has served to cloud over this fact. What is an industry loss warranty (ILW)? An industry loss warranty is a reinsurance contract that pays out if total losses across the industry for an event […]
The Insurance-Linked Securities ‘Missing Link’ The ILS exchanges have so far all failed. This post provides a clue as to why and comes from a capital market operator as opposed to the insurance sector that drove the failed exchanges. 1. Introduction Why is an Industry Loss Future necessary? From the perspective of the capital markets, […]
Industry Loss Warranties: A Blueprint for a Liquid Market The following paper was published by Thomson Reuters A Blueprint for a Liquid Industry Loss Warranty Market An Appraisal from a Capital Market Practitioner By Hamish Raw MBA Abstract: The recent RMS changes to its hurricane risk model has highlighted the deficiencies of an Insurance-Linked Securities […]