Reinsurers seek innovation in ILS market

Alternative capital continues to be attracted to the re/insurance market. Sponsors and intermediaries are looking at ways to introduce more perils to the capital market, with recent deals covering operational risk and non-US catastrophe perils. Cyber risk is often tipped as an obvious candidate to bring to insurance-linked security (ILS) investors owing to the sheer extent of potential losses and the lack of adequate capacity offered by the reinsurance market.