Partners Michael Halsband and Neil Rambin were quoted in an Insurance Day article titled “Legal Spats Over ILS Losses Unlikely, Lawyers Say.” The article addressed the potential for losses associated with insurance-linked securities (ILS), as a result of this year’s active hurricane season.
Halsband said, “Basic concepts around coverage, triggers, risk periods, notice and the like have advanced significantly from the earliest formulations; particularly in the predominant areas of risk transfer – property catastrophe – that dominate the space.” He also emphasized that ILS contracts are no more likely to be contested today than traditional reinsurance contracts.
According to Rambin, most homeowners’ policies do not cover flood risk, and few homeowners in the affected areas took advantage of the government-backed flood program. He said, “Insureds may be particularly innovative in their attempts to avoid flood/water damage exclusions.”
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