Investors in insurance-linked securities (ILS) still haven’t got over the years of “paltry” returns they’ve seen from the asset class since 2017, according to AM Best, but this is one driver for the continuation of the hard market, as well as the much improved coverage terms being agreed to in ILS contracts.
“Hard market conditions have helped the ILS market secure advantageous terms and conditions for both new and renewed programs,” the rating agency explained.
