An Anglo-Suisse Capital deep dive into ILWs and Thornwood Hill Insurance
An Insurance Loss Warranty (ILW) is a type of reinsurance or insurance-linked security contract that provides a payout based on the occurrence of industry-wide insured losses from a specific event, rather than the actual losses of the insured party.
Key Features of an ILW:
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Trigger: The contract is triggered when industry losses (not the buyer's individual losses) exceed a pre-agreed threshold, as measured by a third-party index (like PCS in the U.S. or PERILS in Europe).
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Payout: If the threshold is met or exceeded, the buyer receives a predefined payout, regardless of their own losses.
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Purpose: Commonly used by reinsurers, insurers, or investors to hedge against catastrophic risks like hurricanes, earthquakes, or other natural disasters.
Listen to Alan and Lucy from Anglo-Suisse Capital as they discuss ILWs and how Thornwood Hill Insurance presents several standout qualities, primarily stemming from its specialised focus, advanced operational strategies, and demonstrated performance.