While allocating capital into the insurance-linked securities (ILS) sector is “certainly the right decision for asset allocators” at this time, manager Icosa Investments cautions that with some challenges in the sector it is not advisable for cat bond fund managers to buy everything in the asset class.
Icosa Investments commented on some of the “challenges we currently see in the market, of which there are quite a few,” which its CEO Florian Steiger highlighted in a recent presentation.
First, the cat bond fund manager highlights the fact numerous aggregate catastrophe bonds have seen their attachment deductibles eroded, in some cases significantly.
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