ILS: Opportunities for collaboration

With a full room and a diverse panel of speakers, which included experts from Guy Carpenter Securities, Zurich Re, Bank of America Merrill Lynch, Tullett Prebon and LGT ILS Partners, Munich Re hosted its 8th ILS Roundtable at 2016 Monte Carlo RVS.The discussion started with a statement, “alternative capital is still a hot topic”, and a question to the experts: “Looking back 12 months, what would you say have been the most important challenges and developments?”

Most of the experts agreed on the fact that over that period of time there has been a “moderate amount of bonds being issued”, that “growth has not been quite the same as seen in previous years” and that that there has also been “certain price stability”. Following this, it was pointed out that in the short term “we will probably go through a new cycle of price adjustment”.

Participants also said that “the impact of ILS on the traditional markets seems to have moderated”, and most agreed upon the fact that, while alternative capital is still focused on the natural catastrophe market, a move towards new or uncovered risks such as cyber and pandemic could represent “an opportunity for collaboration” from the traditional markets.