Willis Towers Watson surveyed 122 ILS market participants for the report. Survey participants came from four segments: end investors, ILS funds, insurance and reinsurance companies, and corporate risk managers. The survey found that ILS funds and end investors expected further growth, driven by factors including the impact of climate change and the positive ESG characteristics if ILS.
End-investor respondents identified non-catastrophe weather insurance (64%) and life, accident and health risks (46%) as suitable for ILS mandates. However, less than a quarter found appeal in ILS for other perils, and only 5% were interested in securitized cyber risk, Willis Towers Watson said.
Other findings include:
- More than 80% of end investors expect to either increase their ILS allocation in the next 12 months or expect it to be unchanged
- About a third of end investors said they had postponed new ILS allocations due to COVID-19
- At the end of 2019 – prior to impacts from the COVID-19 pandemic – two-thirds of ILS funds reported trapped collateral of 5% or less of their assets under management
- Four out of five fund manager…
