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ILS investor base stays diverse as market growth opportunities expand

Marsh Securities’ Cory Anger said the shift in demand from established (re)insurance geographies is pushing buyers toward improved structural and whole-account coverage, including new lines like casualty.

Reported · Written up by our desk · Reinsurance

Insurance-linked securities are seeing a broader and more diverse investor base, and industry participants say that is helping keep the market healthy even as reinsurance demand dynamics shift, according to comments from Cory Anger, Managing Director at Marsh Securities, in an interview with Artemis.

Anger said lower replacement cost inflation has eased replacement “limit need” from established (re)insurance geographies, which makes improved structural coverage more important. She also pointed to multi-line whole account coverages, coverage spanning different types of risks, and emerging opportunities such as offshore wind farms and casualty as ways to expand investment opportunities.

The interview also highlighted that strong returns and continued investor interest are supporting the market’s performance. Anger said earnings from permitted investments inside ILS structures are contributing to overall healthy returns, even as the complexity of structures increases.

As the market moves into year-end renewal negotiations, Anger emphasized consistency and relevance as key discussion points for ILS markets and alternative capital managers with both investors and cedents. She added that ILS markets have been willing to innovate faster than traditional reinsurance during a softening cycle and that ongoing volatility in traditional capital markets has continued to reaffirm ILS benefits.

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