Stefano Nicolini, SVP BMS Retro explains what an Industry Loss Warranty is and the key role they play in the catastrophe market. Watch the video to learn more about ILW and the vital role they play in the insurance market and how the current market conditions mean the need for them is ever more present.
Basically a ILW is a contract that can be done in a reinsurance format, on a derivative format, where the contract is triggered by an event instead of on an actual loss to the company. A trigger which is an ILW or an Industry Loss Warranty, which is based on the loss to the industry overall from a catastrophic event….watch to learn more.
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