Michael Halsband was quoted in a Reactions article titled, “Full spectrum: reflecting on ILS innovation.” The article addressed the evolution of the alternative reinsurance market in relation to Insurance Linked Securities (ILS) innovation.
Michael stressed that that market is still evolving. “For more than five years and probably greater, this alternative market, thanks to the appetite of its growing base of investors, comfort with the asset class and its risk-asset managers, has moved beyond private collateralized deals and other tailored transactions,” he said.
“Institutional capital and dedicated mutual funds in the US and abroad, trading directly with risk transferors or through managers, are as at home in this sector as the traditional reinsurers and pension funds,” he added.
Michael suggested that the ILS market continues to introduce new sources of risk capital and provide new solutions to risk transferors and their capital structures. “Commoditization of certain elements of the market has driven price efficiencies – much as it has in the traditional risk transfer market.”
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