A number of insurance-linked securities (ILS) funds have continued to report small increases in losses and reserves set related to business interruption claims from the Covid-19 pandemic, we understand, which continued to weigh on results over the last two months.
Clarity over the extent of business interruption losses that will be faced by the reinsurance market remains murky, which is resulting in a slow drip of reserve setting by ILS funds and capital market vehicles, as managers make best efforts to ensure any potential future impacts are accounted for as fully as possible now.
