With new technology many areas of life are changing, some think for the better and some think for the worse. This is equally true in the reinsurance market where technology is coming in to try to make things more efficient and ‘better’, often in the hope of reducing the price for coverage.
Cyber seems to be close to everyone's thoughts at the moment. At a time that the markets are seeking new business to write with their overcollateralised balance sheets and ILS funds are seeking new products to invest in that are not US hurricane and earthquake, many are turning to cyber. So how well does cyber fit the insurance model?
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Solidum Partners AG is an independent investment management company specialised in and exclusively dedicated to insurance linked securities (ILS). Based in Zurich, Switzerland, a global centre of reinsurance and ILS, the company offers advisory and portfolio management services for investments in this emerging asset class.
Solidum Partners is regulated by the Swiss Financial Market Supervisory Authority (FINMA) and authorised as an asset manager of collective investment schemes.
Casting one’s mind back to the heady premium days of post Katrina / Wilma, life for the reinsurance market, including the nascent ILS market, was good. It was what in the industry is called a ‘hard market’, a market where terms are hard i.e. high premiums combined with narrow coverage scope. Premiums had sky-rocketed and capacity remained fairly scarce. Once they had put to work their own capital, enterprising reinsurers pondered how to continue to capitalise on this boom time.
Cat bond market as a proxy for the general ILS market:
Solidum Partners AG
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