In its recently published whitepaper, Cohen & Company Asset Management, the fixed income financial services investment specialist, explained that due to advances within structuring, analytics, and governance, combined with growing investor familiarity, the firm believes that casualty represents “the next evolution of ILS exposure.”
Casualty ILS remains a relatively new and developing part of the ILS market. While the broader ILS market emerged in the mid-90s, the application of these structures to long tail casualty risks, has only recently begun to accelerate.
“Historically, most ILS capital has supported insurers’ property coverage, particularly policies in regions exposed to catastrophic risk such as coastal Florida. However, driven by advances in structuring, analytics, and governance— combined with growing investor familiarity—we believe casualty represents the next evolution of ILS exposure,” Cohen & Company’s paper explains.
FULL ORIGINAL PUBLICATION HERE