2010 promises to be an exciting year for the market. With an expanded program that includes 2 track dedicated to both insurance and longevity-linked investments, the 2nd ILS Summit Europe explores and debates the critical, providing investors with the information they need to invest effectively, profitably, and with confidence.
Cat Bonds and other forms of P&C Insurance Securitisations
On the non-life side, insurance-linked securities fared well in 2009, with around $3billion issued in the midst of an extremely challenging economic environment. In Europe, the development of EU-wide market loss indices looks set to expand the market in European ILS and ILWs by enabling new transparency and more standardised instruments. Most commentators predict a total of $4-6billion of new issuances over the course of the year.
Several challenges still remain, however. Firstly, although transparency is improving, there are still a number of areas where it lags behind other asset classes – in the pricing of ILS instruments, for example, and in the formulation and selection of loss estimates. Greater transparency in these and other areas will be necessary before we see a dramatic improvement in the willingness of institutional investors to allocate capital.
Life Settlements, Longevity Risk & Life Insurance Securitisations
On the life side, the US regulatory landscape continues to evolve rapidly and remains an
area of concern for European investors. The shifting dynamics between the NAIC and
NCOIL regulatory paradigms, combined with the possibility of SEC and/or other federal oversight, are of critical importance to the willingness of European investors to allocate
capital. Innovation on the life side remains strong, however, with new developments in synthetics, fusion products and shari’ah compliant longevity investments continuing to push the envelope and broaden the investor base.