At the 60th Anniversary of the Monte Carlo Rendezvous de Septembre, Michael Halsband, a member of the Insurance Transactional and Regulatory team, participated in a roundtable hosted by Trading Risk. His comments from this discussion appeared in a Trading Risk article titled, “The Monte Carlo Roundtable 2016.” As reported by Trading Risk, the ILS market attempts to find new ways of appealing to buyers without relaxing conditions. In the face of a shrinking cat bond market, some sponsors - including the larger European primary carriers – are letting ILS transactions elapse and replaced them with traditional or private reinsurance covers.
Michael observed that technology and structuring capability exists to broaden the product offering in this alternative asset space. He comments, “the intersection of technology and insurance is forcing and will continue to force [the market participants] to rethink the way risk is originated and ultimately transferred and modeled.” And continued further that, “disruptive technology will absolutely compress the value chain and at the same time, increase the size of the risk transfer market.”