Posts Tagged ‘cap mgmt risk management’

March 22nd, 2012

Industry Loss Warranty Market

Posted at 1:00 AM ET

The industry loss warranty (ILW) market has seen a robust start to the 2012 renewal season with all major clients having bound significant limits in recent days/weeks. The ILW market tends to react to shortages of capacities in other areas of the market, mostly the ultimate net loss (UNL) retro market. The UNL retro market has been relatively dysfunctional, and most client programs are taking longer to place with a potential for short placement. The wider ILW market has therefore not seen the amount of activity normally associated with this time of year, and clients will look to ILWs in the coming days to bolster any shortfalls in coverage. Some markets have reported a drop in activity compared to last renewal as a result of this delay in the placement process.

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