Unlocking the potential of ILS

This paper examines the prospects for insurance-linked securities (ILS) as the reinsurance and capital markets continue to converge, and presents how sponsors and investors can overcome fundamental challenges to help move it into the mainstream. Co-authors Arthur Wightman, Territory Leader, Insurance Leader and Achim Bauer, UK Insurance Strategy Consulting Leader, assess the STEEP (social, technological, environmental, economic and political) drivers developed in PwC’s Insurance 2020 analysis, and present how each will influence the development of ILS. The paper concludes that the changing risk landscape and the unstable financial market are making ILS even more important – providing an efficient way to match risk, capital and reward in different parts of the world.